Report of the Committee on Energy and Natural Resources to the Committee on the Budget, United States Senate, pursuant t...

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Report of the Committee on Energy and Natural Resources to the Committee on the Budget, United States Senate, pursuant to section 301(c) of the Congressional Budget and Impoundment Control Act of 1974
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Table of Contents
    Front Cover
        Page i
        Page ii
    Letter of transmittal
        Page iii
        Page iv
    Preface
        Page v
        Page vi
    Table of Contents
        Page vii
        Page viii
    I. Overview
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
    II. Major program areas
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
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        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
        Page 72
    III. Legislative action items
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
        Page 79
        Page 80
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        Page 84
        Page 85
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        Page 88
        Page 89
        Page 90
    Appendix. Summary of treasury account numbers
        Page 91
        Page 92
Full Text



95th Congress C0MTE RN
2d SessionjCOXTEPRN






REPORT,COMMITTEE /IE
ENERGY AND NATURAL RES6OUR

TO THE

COMMITTEE ON THE BUDGET
UNITED STATES SENATE

PURSUANT TO
SECTION 301(c) OF THE CONGRESSIONAL BUDGET
AND IMPOUNDMENT CONTROL ACT OF 1974



FISCAL YEAR 1979







MARCH 1978



Publication No. 95-95


Printed for the use of the
Committee on Energy and iNatural Resources


U.S. GOVERNMENT PRINTING OFFICE 2"-27 WASHINGTON : 1978




























COMMITTEE ON ENERGY AND NATURAL RESOURCES HENRY M. JACKSON, Washington, Chairman FRANK CHURCH, Idaho CLIFFORD P. HANSEN, Wyoming
J. BENNETT JOHNSTON, Louisiana MARK O. HATFIELD, Oregon
JAMES ABOUREZK, South Dakota JAMES A. McCLURE, Idaho
FLOYD K. HASKELL, Colorado DEWEY F. BARTLETT, Oklahoma
DALE BUMPERS, Arkansas LOWELL P. WEICKER, JR., Connecticut
WENDELL H. FORD, Kentucky PETE V. DOMENICI, New Mexico
JOHN A. DURKIN, New Hampshire PAUL LAXALT, Nevada
HOWARD M. METZENBAUM, Ohio SPARK M. MATSUNAGA, Hawaii WENDELL R. ANDERSON, Minnesota JOHN MELCHER, Montana GRENVILLE GARSID:, Staff Director and Counsel DANIEL A. DREYFUS, Deputy Staff Director for Legislation D. MICHAEL HARVEY, Chief Counsel RICHARD D. GRUNDY, Senior Professional Staff Member RUSSELL R. BROWN, Professional Staff Mlember W. O. CRAFT, Jr., Minority Counsel CHARLES TRABANDT, Professional Staff of the Minority THOMAS IMESON, Professional Staff of the Minority
(II)











LETTER OF TRANSMITTAL


U.S. SENATE,
COMMITTEE ON ENERGY AND NATURAL RESOURCES,
Washington, D.C., March 15, 1978.
Hon. EDMUND S. MUSKIE,
Chairman, Senate Budget Committee, Washington, D.C.
DEAR MR. CHAIRMAN: Enclosed is the report of the Senate Committee on Energy and Natural Resources to the Senate Budget Committee regarding g fiscal year 1979 as required by section 301(c) of the Congressional Budget Act. In preparation for this report, the committee reviewed the proposed budget submitted by the Administration. Several days of hearings also were held. The committee then formally reviewed and approved the recommendations contained herein.
The report, where appropriate, follows the format and instructions suggested in your letter of February 3, 1978. Where special considerations of the programs within this committee's jurisdiction require deviations from your suggested format, explanations are provided.
This report identifies budgetary authorities and outlays which, in the committee's judgment, are necessary to achieve stated national program goals. The committee's recommendations reflect anticipated enactment of conference agreements on energy legislation associated with the proposed National Energy Act, in particular, the coal utilization, energy conservation, utility rate reform and natural gas pricing bills. All these programs will be reviewed prior to committee action on the fiscal year 1979 annual authorization bill for the Department of Energy. This may necessitate adjustments in the second budget resolution to reflect subsequent energy actions by the Congress.
As in the past, we look forward to continued coordination between our committee and the Budget Committee as the session progresses. We will keep you advised of legislative developments which have budgetary significance.
The staff of the Energy and Natural Resources Committee will be glad to assist your staff by providing any supplemental information necessary for your work.
Sincerely,
HENRY M. JACKSON,
Chairman.
CLIFFORDP. HAN-SEN,
Rank-ing Minority 31ember.




















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PREFACE

Section 301 (c) of the Congressional Budget Act (Public Law 93344), requires all standing committees in each House of the Congress to submit an annual report to the Budget Committee of their respective House. This annual report is due on or before March 1 5 of each year. The report of. each committee is to contain(1) Comments on the general economic setting for the coming
fiscal year with respect to the committee's major areas of
jurisdiction;
(2) A description of the programs and activities within the
committee's oversight jurisdiction and an analysis of the budget and revenue aspects of these programs and activities for the
coming fiscal year;
(3) A description of the new programs and major program
changes initiated in areas of jurisdictional responsibility of the
committee;
(4) Estimates of the new budgetary authority and budget
outlays required by these programs for the current and coming
fiscal year;
(5) Estimate of the budgetary impact of the legislative proposals of the President which fall into the area of jurisdictional
responsibility for the committee; and
(6) Comments on the budget estimates of the President for
those programs already authorized for all or part of the coming fiscal year or for which authorization can be reasonably expected
to continue without major changes.
This committee print contains the report of the Committee on Energy and Natural Resources of the U.S. Senate, submitted to the Senate Budget Committee on March 15, 1978. The committee hopes that this document will prove a useful source of information for persons seeking to understand the operation and budgetary impact of the Federal programs and new activities which come under the jurisdiction of the Committee on Energy and Natural Resources. Sections 301 (a) and 301 (c) of the Congressional Budget Act are reprinted below.


SECTIONs 301 (a) AND 301 (c) OF THE CONGRESSIONAL BUDGET ACT
SEC. 301 (a). ACTION To BE COMPLETED BY MAY 15.-On or before May 15 of each year, the Congress shall complete action on the first concurrent resolution on the budget for the fiscal year beginning on October 1 of such year. The concurrent resolution shall set forth(1) the appropriate level of total budget outlays and of total
new budget authority;
M






VI

(2) an estimate of budget outlays and an appopite level
of new budget authority for each major functional category, for contingencies, and for undistributed intragovernmental transactions, based on allocations of the appropriate level of total
budget outlays and of total new budget authority;
(3) the amount, if any, of the surplus or the deficit in the
budget which is appropriate in light of economic conditions and
all other relevant factors;
(4) the recommended level of Federal revenues and the amount,
if any, by which the aggregate level of Federal revenues should be increased or decreased by bills and resolutions to be reported
by the appropriate committees;
(5) the appropriate level of the public debt, and the amount,
if any, by which the statutory limit on the public debt should be increased or decreased by bills and resolutions to be reported
by the appropriate committees; and
(6) such other matters relating to the budget as may be appropriate to carry out the purposes of this act.

SEc. 301 (c). VIEWS AND ESTIMATES OF OTHER COMMITTEES.-On or before March 15 of each year, each standing committee of the House of Representatives shall submit to the Committee on 'the Budget of the House, each standing committee of the Senate shall submit to the Committee on the Budget of the Senate, and the Joint Economic Committee and Joint Committee on Internal Revenue Taxation shall submit to the Committees on the Budget of both Houses(1) Its views and estimates with respect to all matters set forth
in subsection (a) which relate to matters within the respective jurisdiction or functions of such committee or joint committee;
and
(2) Except in the case of such joint committees, the 'estimate of
the total amounts of new budget authority, and budget outlays resulting therefrom, to be provided or authorized in all bills and resolutions within the jurisdictions of such committee which such committee intends to be effective during the fiscal year beginning
on October 1 of such year.
The Joint Economic Committee shall also submit to the Committees on the Budget. of both Houses, its recommendations as to the fiscal policy appropriate to the goals of the Employment Act of 1946. Any other committee of the House or Senate may submit to the Committee on the Budget of its House, and any other joint committee of the Congress may submit to the Committees on the Budget of both Houses, its views and estimates with respect to all matters set forth in subsection (a) which relate to matters within its jurisdiction or functions.















CONTENTS

page
Letter of trnmta------------------------III
Preface-------------------------------V
I. Oeve---------------------------A. General-------------------------B. Energy---------------------------3
C. Natural resources and environment--------------D. General sciences, space and technology------------10
E Other- -- -- -- ---------------------F. Revenue aspects of the programs---------------12
G. Direct spending jurisdiction-----------------14
II. Major program aes130
A. Department of Eeg------------------15
1. Departmental operations---------------15
2. Energy supply-Research andt development ----------15
3. Energy supply-Product ion, demonstration and
distribution-------------------19
4. Power marketing administrations -------------------22
5. Energy cnevto---------------23
fl. Eniomn------------------25
7. Emergency energy preparedness-----------27
8. Emergency energy preparedness-Strategic reserves- 27 9. Energy information and regulation----------28
10. Basic sine------------------31
11. Defense atomic energy activities -------------------31
12. Summary --------------------------------------- 31
B. Department of the Itro----------------33
1. Advisory Council on Historic Preservation -----------33
2. Bureau of Land Management----------------------33
3. Bureau of Mns----------------41
4. Bureau of Relmto--------------43
5. Heritage Conservation and Recreation Service-----46 6. National Park Srce--------------50
7. National Petroleum Reserve in Alaska------8. Office of Surface Mining Reclamation and Enforcement-------------------------------54
9. Pennsylvania Avenue Development Corporation- -- 55 10. Triois-------------------56
11. U.S. GelgclSre--------------63
12. Smay-------------------64
C. Department of Agiutr----------------466
1. U.S. Forest Srie---------------66
D. Ote-------------------------72
1. National Science Foundlation-Polar programs --------72 III. Legislative action items----------------------------------------- 73
A. Enry------------------------73
B. Natural resources and environment -------------------------79
C. Ote-------------------------88
Appendix-Summary of Treasury Account Numbers ---------------------91
(VII)













1. OVERVIEW
A. GENERAL
The Committee on Energy and Natural Resources in its analysis of the President's proposed budget for fiscal year 1979, formulated the views and recommendations contained herein with consideration to
(1) emerging national needs and priorities, (2) effective maintenance of ongoing programs of proven importance, and (3) the requirement for strict fiscal responsibility. The greatest possible emphasis was placed upon economic and fiscal restraint. Estimates of the budgetary impact of new legislative authorizations therefore are conservative.
The committee's views and recommendations on budgetary matters within its areas of sole and shared jurisdiction are presented in summary by Federal budgetary function and subfunction. The committee's principal programmatic responsibilities fall within the two budgetary functions: Energy (270) and Natural Resources and Environment (300); and the two additional subfunctions of Atomic Energy Defense Activities (053) and General Science and Basic Research (251). Additional committee responsibilities fall within Community and Regional Development (450), General Government (800), Revenue Sharing and General Purpose Fiscal Assistance (850), and Transportation (400).
The fiscal year 1979 estimates and recommendations of the Committee on Energy and Natural Resources by Federal budgetary subfunctions and functions are shown in the table on the next page. Projections of budget authority and outlays for fiscal years 1980 through 1983 are treated as comparable for the purpose of ihis report. The detailed discussion of budgetary authority and outlays is organized b.v major program area to reflect subcommittee responsibilities. See Appendix for a summary of the Treasury account numbers considered by the committee for each functional area.
This report recognizes the progress of work of the Senate-House conference on the legislative proposals contained in the 1977 National Energy Act, and the recommendations include 1979 budgetary estimates which reflect the conference agreements reached to date. (The President's budget requests for the most part are based on the National Energy Act as originally proposed by the Administration.)
The committee will, of course, continue to review the programs involved in its consideration of the fiscal year 1979 authorization bill for the Department of Energy and other authorizations bills required and may have more precise analyses available for the final markup of those measures.
As the report was being prepared, several comments in testimony by representatives of the Administration implied that a "second phase" to the President's National Energy Plan is under active consideration. Because there presently is no substantive information concerning these potential administrative or legislative proposals, they are not reflected in this committee's estimates and recommendations. To the extent that the new proposals are inconsistent with the
(1)








2

SUMMARY OF COMMITTEE RECOMMENDATIONS BY FUNCTION AND SUBFUNCTION
[in millions of dollars]

Budget authority Outlays
President's Committee President's Committee recommendation
budget, recommen- budget,
1979 nation, 1979 1979 1979 1980 1981 1982 1983

National defense (050):
Navy construction (051) ------ 821 864 547 590 500 507 543 587
Atomic energy defense activities (053) -------------- 2,829 2,829 2,536 2,536 2,783 3,025 3,261 3,520
Total defense activities- 3,650 3,693 3,083 3,126 3,283 3,532 3,804 4,107
General science, space and technology (251):
General science and basic research 477 487 466 476 489 500 530 570
Energy (270):
Energy supply 3,586 4,887 3,577 4,427 4,700 5,200 5,700 6,000
Energy conservation (272)-- 1,010 1,197 902 1,052 1,247 930 637 615
Emergency energy prepared.
ness (274) ---------------- 4,255 4,255 3,285 3,285 2,854 1,076 2,404 2,345
Energy information, policy
and regulation (276) ------- 675 748 623 673 741 748 733 666
Total, energy----------- 9,526 11,058 8,386 9,436 9,542 7,954 9,474 9,626
Natural resources and environment (300):
Water resources and power
(301) ------ 616 727 605 705 893 950 1,012 1,080
Conservation
ment 1,385 1,580 1,280 1,375 1 500 1,550 1,600 1,690
Recreational resources (303)-- 1,350 2,110 1,145 1,532 11800 2,000 2,200 2,400
Other natural resources (306)- 121 123 128 129 130 135 140 145
Total, natural resources
and environment -------- 3,929 5,001 3,612 4,197 4,323 4,635 4,952 5,315
Transportation (400):
Ground transportation (401)
(railroad rehabilitation) ---------------- 100 ------------ 100 120 140 160 180
Water transportation (403)- - 3 3 3 3 7 7 8 8
Total, transportation ------- 3 103 3 103 127 147 168 188
Community and regional development (450):
Community development
Q51) -------------------- 27 35 34 39 45 20 10 5
Regional development (452)- 1 1 1 1 1 1 1 1
Total community and regional development ------ 28 36 35 40 46 21 11 6
General government (800):
General activities (804) ------ 8 8 8 8 8 8 8 8
Other general government
(806) ------------------ 157 362 144 294 350 400 450 500
Total, general government- 165 370 151 301 358 408 458 508
Revenue sharing and general
purpose fiscal assistance (850):
Fiscal assistance (852) ------- 105 145 105 145 158 168 174 180
Total, Energy and Natural
Resources Committee---- 17,883 20,893 15,841 17,868 18,321 17,365 19,571 20,500



actions already anticipated by the Congress, the inco. portion in the
fiscal year 1979 budget may present significant difficulties both in the
authorization and the appropriation processes.
Furthermore, this committee was disturbed by testimony and informal comments of Administration officials indicating that the
President's proposed budget has consciously underfunded various
programs in the expectation of submitting major "supplemental"
appropriations requests later in fiscal year 1979. To the extent that
the committee has discovered such inadequacies ; in the proposed






3

budget, this report recommends that the First Concurrent Budget Resolution for fiscal year 1979 and the relevant authorization and appropriations acts provide for adequate funding at this time.
The sizeable increases recommended by the committee are, to a significant extent, occasioned by anticipated "supplemental" budget requests which will be necessary to carry out program activities currently anticipated by the Executive Branch, but not fully provided for in the President's proposed budget for fiscal year 1979.
The Budget Committee may wish to give its serious attention to this practice of deferring funding requests into "supplemental" appropriations measures. The adverse effects upon the budgetary process of such an approach are self-evident.
The Congressional process of annual authorizations and the First Concurrent Budget Resolution cannot be effective or rational if major policy decisions which will impact on the current and next fiscal year are habitually withheld by the Administration until initial budget decisions have been completed by the Congress.
This committee last year was forced to deal with the budget impacts of the Administration's National Energy Act and Plan submitted in early May, and a Nuclear Non-Proliferation Budget Amendment submitted in mid-May. The resulting actions of the committee reauired a number of budget waivers. These actions also became the subject of correspondence from the leadership of the Budget Committee encouraging this committee to make every effort to meet the Budget Act deadlines for reporting legislation with fiscal year 1978 budget impact. Every effort has been made to satisfy that request, but it is possible that agami pending Administration initiatives in energy may be submitted after the Budget Act otherwise contemplates normal submission and consideration by this committee.
B. ENERGY
Energy (270)
Since Senate recognition in 1970 of an emerging energy crisis and the subsequent interdiction of international oil supply in 1973, major policy initiatives have been taken by the Congress toward formulation of a comprehensive National Energy Policy- Significant program authorizations were provided in the areas of energy research and development, petroleum pricing and allocation, contingency planning for shortages or embargoes, loan t guarantees for synthetic fuelsi energy conservation, and increased domestic energy production.
After the commencement of the 95th Congress, on April 20, 1977, President Carter proposed a National Energy Plan formulated with the objectives of reducing our increasingly critical dependence upon diminishing supplies of oil and gas, encouraging conservation of scarce energy resources, stimulating conversion to more abundant fuels, and reducing our large trade deficit. The President's proposals incorporated several major energy policy initiatives already under consideration by the Congress in the areas of energy conservation, greater coal utilization, management of the Outer Continental Shelf, n natural gas pricing, surface mine control and reclamation, and utility rate reform.- Many of the individual legislative proposals were identified in this committee's March 15, 1977, report to the Senate Committee on the Budget.




4

The Senate-House conference on'the National Energy Plan legislation is nearing completion of consideration of several measures with significant potential fiscal year 1979 budgetary implications. The fiscal year 1979 budget, reflects recent establishment of the Department of Energy to consolidate Federal energy programs. In further recognition of the vital nature of energy to the United States future security the committee endorses creation of the new budgetary function exclusively relating to "Energy." This report addresses national energy needs within the following major subfunctions: energy conservation; energy supplies; emergency energy preparedness; and energy information, policy, and regulation.
The committee recommends that total budgetary authority for the Energy function be increased by $1,531 million above the President's proposed budget of $9.5 billion.
Included within the function Energy are activities of the Department of the Interior concerning the National Petroleum, Reserve in Alaska. Exploration of the reserve is a major undertaking which will require persistence and sustained effort. The committee's overall estimate for the Energy function would increase the President's -proposed budget of $186 million for fiscal year 1979 by $66,452,000 for this program area.
The Committee on the Budget should be aware that it is anticipated that the President will propose further legislative initiatives with fiscal year 1979 budgetary implications which cannot be evaluated at this time. These May need to be accommodated at a later stage in'the budgetary process.
Energy Supply (271)
For the subf unction 'of Energy Supply the President's proposed budget for fiscal year 1979 would authorize $3,586,000,000. This subfunction includes the major Department of Energy program areas of
(a) research and development; (b) production, demonstration, and distribution; and (c) power marketing administrations. As set forth subsequently the committee estimates an $1,271,000,000 increase in budget authority for this subfunction. Energy Conservation (272)
SFor the subfunction of Energy Conservation the President's proposed budget for fiscal year 1979 would authorize $1,010,000,000. The committee estimates $187 million increase in budget authority for this subf unction.
Emergency Energy Preparedness (274)
For the subfunction of Emergency Energy Preparedness the President's proposed budget would authorize $4,255,000,000. The principal program area is strategic reserves. The committee supports the proposed allocation of Energy function resources to this subfunction and does not recommend any change at this time. Energyj Infornation, Policy and Regulation (276)
For the subfunction of Ene'gy Information, Policy, and Regulation the President's proposed budget for fiscal year 1979 would authorize $675,000,000. This subfunction includes the Federal Energy Regulatory Commission. The committee recommends an $73 million increase in budget authority for this subfunction.






5
SUMMARY OF COMMITTEE ESTIMATES BY FUNCTION AND SUBFUNCTION [In millions of dollars)
Budget authority Outlays
1979 1979 Commit- 1979 1979 CommitPresident's tee recoin- President's tee recoinbudget mendation budget inendation
Energy (270):
Energy supply (271) ---------------------------- 3.586 4,857 3,576 4,427
Energy conservation (272)------------------------ 1.010 1.,197 902 1,052
Emergency energy preparedness (274)-------------- 4,255 4,255 3.285 3,285
Energy information, policy, and regulation (276)..---- 675 748 623 673
Total------------------------------------- 9,526 11,057 8,386 9,437

LOAN GUARA-kNTEE PROGRAMS FOR ENERGY DEVELOPMENT
In Public Law 95-238,' the Congress authorized the Secretary of Energy to initiate a demonstration program of synthetic fuels and alternative energy source development through Federal guarantees of private loans. Thlis authority requires (1) for individual undertakings which are not over $50 million total cost, that the Secretary obtain a line item approval in an appropriations act prior to making commitments; and1 (2) for undertakings in excess of $50 million of total cost, that the Secretary obtain specific statutory authorization prior to making individual proj ect commitments.
This law also includes new stat utory authority for establishment of a financial support program for municipal waste reprocessing (1emonstration facilities, which includes price supports. Also, the Federal Nonnuclear Energy Research and Development Act of 1974 and the Energy Conservation and Production Act of 1976 authorize various price support, price guarantee and other loan guarantee authorities for synthetic fuels and renewable resources.
No projects relying upon this authority have been included in the President's budget for fiscal year 1979. The committee, however, may wish to consider authorization of one or more major items in this annual authorization act. Furthermore, the administration has testified that it may recommend participation in such projects through loan guarantees, price supports or both in the immediiate future.
As this committee understands the situation, it would be possible for the Appropriations Committees to recommend approval of loan guarantees for projects of less than $50 million each or for this committee to authorize loan guarantees in excess of $50 million each without any budget authority impact insofar as the pending budget r'esolutions are concerned.
if, however, the administration should propose to establish a fund to insure the payment~ of possible (defaults on guaranteed loans or if the administration should recommend a program of price supports or guaranteed purchases, a budgetary impact in fiscal year 1979 might result.
Inasmuch as any aggressive demonstration program in synthetic fuels technologies could involve investments of several billions of dollars, the budgetary approach will be of great importance. TIhis committee has assumed that any action taken during this session of the Congress would involve only existing loan guarantee authority and that no budgetary impact will be involved during fiscal year 1979.







PERSONNEL POLICIES
The committee paid particular concern to the personnel levels and the personnel allocations among the programs within its jurisdiction. The allocation policies for personnel within the new Department of Energy poses a potential problem. Several of the operational programs have been denied authority by the Department to fill obviously essential positions. At the departmental level, however, there is a large block of positions for budgetary purposes which are not related to any identifiable program authority.
In view of the restrictions imposed by the Department of Energy Organization Act, it seems unlikely that the Department as a whole is overstaffed. For this reason the committee will be making further inquiries into this situation, and may wish to influence the allocation of these positions to identifiable program areas in the fiscatyear 1979 authorization bill for the Department.
CLINCH RIVER BREEDER REACTOR
The determination of the appropriate fiscal year 1979 program for the Clinch River Breeder Reactor (CRBR) involves a sip-mificant policy decision concerning continuation or termination of the CRBR. Additional hearings by the committee will be necessary to determine this committee's formal recommendations on the issue.
The recommendations contained in this report do notprejudge the outcome of the decision. Whether the Congress will decide to terminate or continue the project in fiscal year 1979 is unclear. In either event, an authorization and appropriation of approximately $200 million may be required for fiscal year 1979. A program of $200 million is recommended for the CRBR for fiscal year 1979. The committee believes this is the order of magnitude of the program which would need to be authorized to continue the pro. t.
iec Furthermore, if
the President's proposed termination of the project were agreed to by the Congress, appropriations of the same order of magnitude may be required to repay the utilities for their contribution to, the CRBR, to pay termination costs on existing contracts in order to avoid or minimize lawsuits ag inst the Federal Government, and to pay successful legal claims arising from termination.
EPA-DOE PROGRAM TRANSFER
The President's fiscal year 1979 budget proposes transfers of certain environmental research and development programs from the Department of Energy (DOE) to the Environmental Protection A ency (EPA). In addition, transfers of other programs from EPA to DOE are proposed. These transfers are inconsistent with the agreement arrived at imong.the Congressional committees with jurisdiction over these two agencies as reflected in the enabling legislation for the Department of Energy.
In this report, the committee recommends the restoration in the Department of Energy budget of funding for programs which have been in the Department heretofore. The Committee has not recommended deletion of funding for programs transferred to the Department from the Environmental Protection Agency, because these are important programs that must be supported. During Congressional consideration of authorizing legislation for these two agencies, coordination among the committees of jurisdiction will eliminate any duplication of funding.





7

C. NATURALRESOURCES A.N-DEXVIRO.NME.NT
Current with heightened attention to national energy problems, congressional concern focused on issues surrounding Federal natural resources, and parks and recreational programs.
Within the function Natural Resources and Environment the President's proposed budget for 1979 would authorize $3,928,776,000 for program areas within the jurisdiction of the committee. As discussed subsequently, the committee recommends a $1,072,059,000 increase in budgetary authority for this function as noted in the table. The majority of the proposed increases are to reflect anticipated supplemental budget requests from the Administration.
SUMMARY OF COMMITTEE RECOMMENDATIONS BY FUNCTION AND SUBFUNCTION fin thousands olf dollars
Budget authority Outlays
1979 1979 1979 1979
Presi- Committee Presi- Committee
dent's recom dents recombudget mendation budget mediation
Natural resources and environment (300):
Water resources and power (301): Bureau of
Reclamation ---------------------------------- 615,720 726,720 604,540 704,540
Conservation and management (302):
Forest Service ------------------------------ 893,631 1,031,104 831,781 880,107
Bureau of Land Management ------------------ 383,024 432,163 378,780 419,052
Office of Surface Mine Reclamation and Enforcement -------------------------------- 108,620 117,120 69,870 75,870
Recreational resources (303):
U.S. Forest Service --------------------------- 19,545 42,545 18,875 33,875
Corps of Engineers --------------------------- 3,300 3,300 3,500 3,500
Bureau of Reclamation ------------- 7 --------- 4,025 4,025 3,510 3,510
Advisory Council on Historic Preservation ------- 1,553 2,000 1,481 1,881 Heritage Conservation and Recreation Service --- 836,533 1,382,033 632,480 984,480 National Park Service ------------------------ 484,965 676,965 484,891 505,041
Other natural Resources (306):
Bureau of Mines ---------------------------- 121,329 123,229 127,975 128,975
Office of the Solicitor-Office of the Secretary ---- 58,168 58,168 60,166 60,166 U.S. Geologic Services ------------------------ 398,363 401,463 393,838 395,838
Total, natu ral resources and environment___ - 3,928,776 5,000,835 3,611,687 4,196,835

RENEWABLE RESOURCES
In recent years, a heightened interest in the renewable resources on national forest and national resource (Bureau of Land Management) lands has developed. Numerous executive branch reports, including the 1973 Report of the President's Advisory Panel on Timber and the Environment, the 1975 BLM Range Condition Report, and the 1976 Forest Service Forest and Rangeland Renewable Resource Assessment, have disclosed that the productivity of the Nation's forest and range lands is relatively low and the quality of a significant portion of these lands is declining. In short, the statutory goal of "sustainedyield" management has not been fully, realized.
Judicial attention to renewable resources has also increased. Recent Federal court decisions have called into question certain traditional timber-cutting and range management techniques and required more thorough multiple-use planning and environmental and social impact analysis as prerequisites to decisions affecting renewable resources on the public lands.
Congressional attention to public land renewable resources issues predates the work of the executive and judicial branches. Beginning






8

with the enactment of legislation creating the Public Land Law Review Commission in 1964 and continuing for over a decade thereafter, the Congress undertook, and commissioned, numerous studies. This study -phase concluded in the 93d Congress with: (1) the enactment of the Forest and Rangeland Renewable Resources Planning Act which provides for a continuing program of study and planning of public land renewable resources, and (2) the 1974 request of the Senate Appropriations Committee for, and the 1975 submission of, the BLM Range Condition Report. In 1976 the Congress moved to the authorization stage by enacting or beginning work on several significant public land management measures. The Federal Land Policy and Management Act of 1976 and the National Forest Management Act of 1976 were enacted into law and the National Rangelands Policy Act was passed by the Senate. Each of these measures had as one of its principal purposes the mandating of more effective renewable resources planning and management and the authorizing of sufficient funding to achieve that purpose.
This Congressional activity is based on two premises: (1) our public land renewable resources are not being fully utilized, the productivity of such resources is unnecessarily low, and far too high a percentage of our Federal lands devoted to such resources continues to deteriorate; and (2) management and rehabilitation programs for rene-wable resources yield long-term benefits commensurate with or in excess of their costs. Evidence that these premises are accurate is provided by the numerous executive branch reports previously cited. For example, the 1975 BLM Range Condition Report, presents an alarming picture of the condition of the BLM rangelands. According to the report only 2 percent of the BLM rangelands is in excellent condition, another 28 percent is in poor condition, and 5 percent is in bad condition. Furthermore, the report discloses that 16 percent of the range continues to decline. The report outlines a 20-year range rehabilitation program which would need an additional average annual appropriation of $45 million. Although this cost is considerable, the report notes that total benefits in increases in forage production for domestic livestock, enhancement of wildlife habitat, protection of watersheds, anti reduction of salinity in the Colorado River would total approximately $125 million annually. Timber and range management programs, wildlife habitat enhancement programs, land and water stewardship programs, and programs designed to enhance dievelopedi and dispersed recreation on the public lands are examples of the critically needed anti highly cost-effective resource management opportunities which should be encouraged.
Fiscal year 1979 is a crucial budget year for public landi renewable resources management. The period of study is over and, with the exception of the National Rangelands Policy Act, the authorizing legislation has been enacted. While the study and legislative efforts have not required significant bud(getary outlays, implementation of the more costly study recomm endlations and statutory mandates will require a significant increase in founding levels. In order to meet the sudden and severe demands resulting froin the energy crisis, recent budIgets have emp~hasizedt the non-renewable resources over the renewable resources. Although the fiscal year 1979 budget must continue to place substantial funds in energy-related public land programs, no significant additional increases in these budget categories appear necessary. This






9

leveling-off of energy-related funding needs would permit a modest shift in budgetary emphasis to renewable resources at exactly the time when the Federal government stands ready to translate its concern over the condition of these resources into action to preserve, rehabilitate, and more intensively use them.

CRITICAL PERSONNEL REQUIREMENTS
As this committee has reported in prior years, the natural resources programs are chronically undermanned throughout the Department of the Interior. Specific deficiencies anti the impacts are noted in this report.
As the committee stated in last year's report, personnel ceililngs have become a new means of budgetary constraint. Despite the policies set forth in the Congressional Budget Act, the Administration has effectively limited the levels of activity in many program, arets by limiting personnel assigned to such areas. Without some relief from personnel ceilings, increases in appropriations often cannot be effectively used. It may be necessary for the Congress to take a more direct role in the allocation of personnel positions among program aref",s
To meet the renewable resource mandates of the recently enacted public land laws, several increases in BLM and U.S. Forest Service budget categories are recommended.
These proposed funding in-rcreases, however, will not be fully effectual without concomitant increases in personnel levels in these and other Federal land management agencies. The lack of human resources to even properly stabilize public land conditions and maintain their existing low-level productivity and presently diminlishedl quality is a national embarrassment. The increasing reliance of Federal land management agencies on temporary personnel andl contracting authority not only inhibits control of the quality of work performed but also significantly increases its cost, thus reducing the effectiveness of whatever funding renewable resources do receive. Tfhe fiscal year 1979 budget request would continue this recent trend of accommodating only a minimum number of permanent positions and relying instead upon temporary personnel anti contracting to accomplish the public land management agencies' workload.
For example, the fiscal year 1979 budget request for the BLM1 includes funds for 155 positions which are shown as full time permanent and 1,210 shown as other than permanent. Many of these would have been permanent positions if adequate ceilings had been available. This is consistent with ceiling limitations imposed (luring the last several years. Fifty percent, of the total obligations of the major BLMN appropriations-Management of Land and Resources-in fiscal year 1977 involved temporary salaries and contracts; seven years ago, these two categories accounted for only 16 percent of the total obligations incurred. This committee firmly believes the proportion of work accomplished by permanent staff in 1971 should be restored.
Forest Service program responsibilities have been consistently increasing with very small increases in permanent staffing. For example, the Forest Service's Forest Protection and Utilization appropriation for fiscal year 1978 was approximately $240 million above the President's fiscal year 1978 budgYet request. Most of theinrae were in programs requiring significant numbers of additional per24-427-7-75 2






10

sonnel. To fulfill its land management responsibilities, the Forest Service estimates that 30,075 other than ful-time and 22,375 permanent full-time employees will be needed in fiscal year 1978. Of the 30,075 other than full-time employees 7,700 are substantially full-time employees who should be full-time if personnel ceilings were available.
The following committee recommendations for increases in various budget categories over the amounts requested by President Carter in the fiscal year 1979 budget proposal are based on the assumption that personnel ceilings will be increased to insure that fuiltime employees conduct the activities which the increases would fund.

D. GENERAL SCIENCES, SPACE AND TECHNOLOGY
In order to better address the United States national energy needs the Department of Energy undertakes general science and basic research; for example, research in high energy and nuclear physics, as well as life sciences. Such programs of the Department are supportive of the agencies energy missions and programs, as the committee intends.
The committee fully supports such efforts to expand basic scientific knowledge and our understanding of the Earth. In addition to the polar programs of the National Science Foundation, the President's proposed budget for fiscal year 1979 would authorize $426 million in the subfunction General Science and Basic Research (251) for programs of the Department of Energy with emphasis on critical national energy problems. The committee, as discussed subsequently, estimates a $10,000,000 increase for this subfunction.
SUMMARY OF COMMITTEE RECOMMENDATIONS BY FUNCTION AND SUBFUNCTION [in thousands of dollars!
Budget authority Outlays
1979 1979 Commit: 1979 1979 CommitPresident's tee recoin- President's tee recomnbudget mendation budget mendation
4Genera I science, space, and technology (250): General
science and basic research (251)-------------------- 477, 000 487, 000 465,500 475P 500

E. OTHER

Within the j urisdiction of the committee are several program areas which are not reflected in the aforementioned functional discussions. The affected functional areas (see table) include National Defense (050), Community and Regional Development (450), Geneial Government (800), and Revenue Sharing and General Purpose Fiscal Assistance (850).
RAILROAD REHABILITATION
The conference agreement on HJ.R. 5146 as approved would authorize an addition of $100 million to the Railroad Rehabilitation Fund for the rehabi1litation of branch railroad lines to transport coal and coal products. The committee recommends full funding in fiscal year 1979 of this program which would be in the Transportation function (400).







11

SUMMARY OF COMMITTEE RECOMMENDATIONS BY FUNCTI&I AND SUBFUNCTION [in thousands of dollars]

Budget authority Outlays
1979 1979 Commit- 1979 1979 Comm itPresident's tee recom- President's tee recombudget mendation budget mediation

National defense (050):
Navy construction (051) ------------------------- 820,900 863,900 547,000 590,000
Atomic energy defense activities (053) ------------- 2,829,083 2,829,083 2,535,833 2,535,833
Total, defense 3,649,983 3,692,983 3,082,833 3,125,833
Transportation (400):
Ground transportation railroad rehabilitation ---------------------- 100,000 -------------- 100,000
Water transportation (403) ----------------------- 3,000 3,000 3,000 3,000
Total, transportation (400) --------------------- 3,000 103, 000 3,000 103,000
Community and regional development (450):
Community development (451):
Pennsylvania Avenue Development Corporation- 27,285 34,500 34,085 39,085
Area and regional development (452):
Alaska Planning Commission ----------------- 1,025 1,025 1,246 1,246
Total, Community and regional development- 28,310 35,525 35,331 40,331
General government (800):
General activities (804) -------------------------- 7,549 7,549 7,549 7,549
Other general government (806)_ 157,434 362,224 143,700 293,700
Total, general 164,983 369,773 151,249 301,249
Revenue sharing and general purpose fiscal assistance
(850).
Other general purpose fiscal assistance (852):
Bureau of Land Management- 105,000 145,000 105,000 145,000


HOUSLXG A'-\D URBAN." DEVELOPNIE."XT

The Senate-House conference on National Energy Act legislation has approved several major ener'ay conservation programs to be administered by the Department of Housing and Urban Development, which are not incorporated iD these budgetary recommendations. At this time, it is unclear whether the affected biidcretarv functions will be Energy (270) or Community and Regional Development (450). In summary, the conference agreement would authorize the Government National Mortgage Association to purchase (a) up to $3 billion in energy conservation loans to low and moderate income families, (b)
up to $2 billion in other energy conservation loans, and (c) up to $110 million in loans for solar energy systems.
The conference agreement also authorizes the Secretary of Housing and Urban Development to (a) annually contract $10 million for energy conservation improvements in certain existing low-income housing projects, and (b) make grants to finance energy conservation improvements to multifamily housing projects whose mortgage loans are insured under the N-ational Housino Act. In addition, the Secretary is (a) to establish minimum standards for energy conservation improvements to the aforementioned multifamily dwelling units, and
(b) authorized $10 million in Fiscal Year 1979 for grants to State and local government *in support of adoption of energy conservation standards for all new buildings.








12


F. REVENUEAsPECTS OF THE PROGRAMS

Consideration of expenditures alone for Federal energy and other natural resource programs in many instances does not provide a comprehensive perspective on the use of public resources. The Congress also must consider the long-term development of public resources and the receipts derived therefore.

DEPARTMENT OF THE INTERIOR

The natural resource programs of the Department of the Interior result in proprietary receipts and Outer Continental Shelf receipts. Proprietary receipts (see table) are estimated as $1.068 billion and $1.182 billion for fiscal years 1978 and 1979, respectively, which are included in the Departmental totals in the President's Budget Documents. In addition, Outer Continental Shelf receipts of $2 billion and $1.800 billion for fiscal years 1978 and 1979, respectively, are shown as a governmentwide offsetting receipt.
The total estimated receipts from the Bureau of Land Management's public land programs is estimated as $2.506 billion and $2.361 billion for fiscal years 1978 and 1979, respectively. These estimated receipts exceed the total BLM budget for these years.
DEPARTMENT OF THE INTERIOR
BUDGET TOTALS
[in millions of dollars: fiscal years]

Increase or
1978 1979 decrease

Gross, budget authority -------------------------------------------- 5 450 5 710 +260
Less: Offsetting receipts ---------------------------------------- -1:193 -1:257 -64
Net, budget authority --------------------------------------- 4,257 4,453 +196
Gross, budget outlays -------------------------------------------- 5 097 5 260 +1 0
Less: Offsetting receipts --------------------------------------- -1:193 -1:257 -64
Net, Budget outlays ----------------------------------------- 3,904 4,003 +99


ESTIMATED OFFSETTING RECEIPTS BY BUREAUS.
[in thousands of dollars; estimated]

Bureau or office 1978 1979

Bureau of Land Management ----------------------------------------------------- 506,014 561,014
Bureau of Reclamation ---------------------------------------------------------- 240,325 258,995
National Park Service ----------------------------------------------------------- 21,443 21,414
Geological Survey ------------------------------------------------- -------------- 6,236 6,786
Bureau of Mines ---------------------------------------------------------------- 816 816
Office of Territorial Affairs ------------------------------------------------------- 3,500 4,000
Office of the Secretary ----------------------------------------------------------- 2,005 664
Subtotal ----------------------------------------------------------------- 780,339 853,689
With OCS receipts-Bufeau of Land Management ----------------------------------- 2,000,000 1,800,000
Total -------------------------------------------------------------------- 2,780, 339 2,653,689
Fish and Wildlife Service I ------------------------------------------ ------------ 7,700 7 700
Bureau of Indian Affairs I -------------------------------------------------------- 404,978 396:072
Subtotal ----------------------------------------------------------------- 412,678 403,772
Total, offsetting receipts --------------------------------------------------- 1 193,017 1,257,461
With OCS ---------------------------------------------------------------------- 2:000,000 1,800,000
Total -------------------------------------------------------------------- 3,193,017 3,057,461
... ... .......................
I Off setting receipts not within committee jurisdiction.






13

Since expenditures for Federal resource programs in many inst ances result in increased revenues from the use of public resources, the Congrress should consider these expenditures as a capital investment rather than as a simple outlay of funds. Failure to make these investments at the level which at least maintains the value of the resource means that we will allow a large percentage of our natural resource base to deteriorate. This is clearly not in the long-term national interest since the strength of our Nation is based heavily on our wealth of natural resources.
In part because of failure to adequately reflect this interrelationship, the estimated receipts for fiscal year 1978 from Bureau of Land Management programs are now estimated at $2.506 billion rather than $3.755 billion in the committee's report last year.

DEPARTMENT OF ENERGY
The programs of the Department of Energy also generate substantial Federal receipts. The principal program is uranium enrichment for nuclear power reactor fuel which will result in estimated revenues of $966 million and $1.209 billion in fiscal years 1978 and 1979, respectively. However, the revenues projected by the Administration to accrue to the Department of Energy from enrichment services include $163 million which are anticipated revenues based on enactment of commercial pricing legislation in the 95th Congress. Since the Congress rejected a similar legislative proposal in the fiscal year 1978 authorization bill, allowance should be made in the budget resolution for an increase in the Department of Energy authorization total to encompass the possibility that the Congress will again reject enactment of the proposed legislation. Also, the Administration has stated the intention to, propose legislation shortly establishing a revolving fund for uranium enrichment revenues andl operations. Passage of such legislation could result in additional budget requirements in fiscal year 1979, and may impact on the revenue and obligation totals associated with the uranium enrichment operations.
The President's proposed budget for the Energy function assumes offsetting receipts based on enactment of the original tax proposals contained in the President's National Energy Plan submitted to the Congress last spring.
The major proposals include (a) a crude oil equalization tax;
(b) an oil and natural gas consumption tax on certain industrial and tilit use; (c) an auto efficiency (or gas guzzler) tax; and (d) residentialandbusiness tax credits.6
Tax receipts generated from these proposals would generally be returned to the economy through tax refunds and increased Federal spending. The energy proposals reduce estimated receipts by $0.1 billion in 1978 and increase receipts by $1.1 billion and $2.9 billion in .1979 and 1980, respectively. Anticipated changes by the Congress in the Administration's proposals would significantly ebant-ge the estimates of receipts and impact on the Energy function lb-tigetary ceilingrs to the extent relied on as offsetting receipts.






14

G. DIRECT SPENDING JURISDICTION

The committee has within its jurisdiction several continuing Programs which involve direct spendi!ig jurisdiction. The most significant of such programs is the uranium enrichment program of the Department of Energy mentioned above.
A summary of the direct spending accounts within the jurisdiction of the Committee on Energy and Natural Resources follows:
List of direct spending accounts within the jurisdiction of the Committee on Energy and Natural Resources
Energy (270): Treasurp
Energy supply (271): Account No.
Advances for cooperative work ---------------------------- 89-8575
Continuing fund, Southwestern Power Administration- 89-5649
Natural Resources and Environment (300):
Water resources (301):
Colorado River Basin 14-4079
Reclamation trust 14-8070
Payments from proceeds, sale of water --------------------- 14-5662
Conservation and land management (302):
Forest Service permanent appropriations -------------------- 12-9922
Miscellaneous permanent appropriations- 14-9921
Miscellaneous trust 14-9971
Recreational resources (303):
Land and water conservation 14-5005
Donations ---------------------------------------------- 14-8085
Miscellaneous permanent appropriations 14-9924
Miscellaneous trust 14-9972
Pollution control and abatement (304): Litter prevention and
cleanup ---------------------------------------------- 14-5031
Other natural resources (306):
Helium fund --------------------------------------------- 14-4053
Contributed funds --------------------------------------- 14-8287
Community and regional development (450):
Community development (451):
Community disposal operations 86-4040
Cooperative funds --------------------------------------- 48-8061
General government (800):
General property and records management (804): Virgin Islands
Corporation Liquidation Fund ------------------------------ 47-4480
Other general government (806):
Office of the Comptroller of 14-5 329
Civil War Centennial Commission: Donations-------------- 76-8082
Other general purpose fiscal assistance (852):
Miscellaneous permanent appropriations (other general purpose
fiscal 14-9921
Miscellaneous permanent appropriations 14-9922
Internal revenue collections for the Virgin Islands 14-5738
Miscellaneous permanent appropriations (U.S. Customs
Service) 20-9922











If. MAJOR PROGRAM AREAS
A. DEPARTMENT OF ENERGY
1. DEPARTMENTAL OPERATIONS
The Department of Energy conducts a number of program activities which cannot readily be assigned to the various program areas discussed subsequently. In this regard the Department of Energy's proposed budget proposes $504,860,000 for the mission of Policy and Management, the personnel within this mission are not assigned on a pe-rmanent basis to particular program areas but rather can be assi,(rned to the various program areas at the discretion of the Seeretary.
The committee paid particular concern to the allocation of these personnel among the programs within its jurisdiction. As discussed in the overview section, these allocation policies within the new Department of Energy pose a potential problem. Several of the operational programs have been denied authority by the Department to fill obviously essential positions. On the basis of the committee's examination of this mission it does not appear that the Department is overstaffed as a whole and the committee does not estimate a budgetary change. However, the committee will be making further inquiries into this situation, and may wish to influence the allocation of these positions to identifiable program areas in the fiscal year 1979 authorization bill.

2. ENERGY SUPPLY-RESEARCH AND DEVELOPMENT General
The Department of Energy programs related to Energy SupplyResearch and Development support research and development of technologies intended to impact on the energy requirements of our country in the near-, mid-, and long-term. These programs are oriented to areas of research, development and demonstration which private industry either cannot fund or has not funded due to technical, environmental, economic or institutional barriers to the commercialization of the technologies.
Prior to fiscal year 1978, the annual increases in funding for these programs were rapid and largely due to Congressional initiatives to insure that alternatives to petroleum and natural gas were being developed so that they could be commercialized between now and 2000. In fiscal year 1978, the Carter Administration submitted a revised budget and a budget amendment for the then Energy Research and Development Administration programs to shift the emphasis of its research and development activities heavily toward the near-term with decreased emphasis or termination of a number of activities in nuclear fission, solar electric, and nuclear fusion programs. Explicit statements were made that the commercialization of first generation coal gasification would not be supported.
(15)






1.6

The President's proposed Department of Energy budget for fiscal year 1979 continues the shift toward near-term results in meeting the energy crisis with heavy emphasis on regulatory, conservation, and strategic activities at the expense of Energy Supply--Research and Development programs. This area has experienced a real dollar decrease in funding without any consideration. for inflation. The 5-year projected expenditures for Energy Supply--Research and Development indicate a continuation of this pattern, with the projected funding in fiscal year 1983 exceeding the fiscal year 1979 budget by only percent without allowing for inflation, thereby resulting in a real dollar increase.
Without a change in the budgetary allocation for Energy SupplyResearch and Development, the Nation may successfully meet the short-term energy problem, but fail to solve the longer-term problem. Based on the requests made by the Department of Energy to the Office of Managrement and Budget, it is clear that a number of program activities were curtailed during 0MB review and that additional funding is justifiable for several programs.
If committee review during consideration of authorization legislation discloses poor planning or unpromising experimental results in any programs the committee will reduce authorizations. Fossil Energy
A major energy problem in the coming decade will be a. shortage of gaseous and liquid fuels. This problem can be somewhat ameliorated by substituting coal for petroleum, and by enhancing domestic liquid fuel supplies. The Administration's National Energy Plan emphasizes the former strategy. The latter strategy involves the enhancement of domestic petroleum supplies but, more importantly, it implies the development of industries capable of producing alternative fuels from coal and other resources.
Trhe fossil energy program includes funding for coal, petroleum, and natural gas research and development. The coal program is responsible for coal mines, coal liquefaction, and coal grasification research and development. In light of the need for oil and'gas substitutes, the committee may increase substantially the funding for coal gasification and liquefaction. Smaller increases may be recommended to allow for expansions in other parts of the coal program.
Other additions to the Fossil Energy Program budget request will probably be recommended for oil shale development, for research and development on unconventional gas deposits, and for magnetohydrodynamics development.
As noted elsewhere in this report, legislative action on S. 419, the Federal Oil Shale Commercialization Trest Act is contemplated this session. Increases in authorization for fiscal year 1979 for the expanded oil shale program may be authorized by that act.
Many of the fossil energy pilot plants funded by the Department of Energy are operational. Trhe next step toward commercialization is the construction and operation of demonstration-sized plants. However, due to the high cost of these projects, not all technologies w ill be demonstrated.
The authorization contemplated by the committee may include funds for additional liquefaction and gasification initiatives.






17

Nuclear Energy
The Administration indicated in fiscal year 1978 that even though commercial reprocessing would not be permitted and the Clinch River Breeder Reactor Project should be terminated, the activities in fuel cycle research and development and the Liquid Metal Fast Breeder Reactor (LMFBR) base program would continue to be funded at a strong level. However, the budget submission to the Congress f or fiscal year 1979 indicates a further retrenchment in funding for the nuclear fuel C37 cle and the L-NIFBR base program. The committee in its consideration of the proposed authorization legislation mav make significant additions to these two program areas to insure thA adequate funding is available to maintain sufficient research and development activity to preserve these nuclear fission options as well as to support the International Nuclear Fuel Cycle Evaluation program in seeking proliferation-resistant technology es. Smaller adjustments in other areas of the nuclear fission program may be made by the committee to increase emphasis on programs of special interest or to decrease funding for programs lacking a sound technical basis.
The President's proposal to terminate the Clinch River Breeder Reactor Proiect was not accepted by the Congress in fiscal vear 1978. Instead, $80 million in fiscal year 1978 for continuation of the project was included in an appropriation act. Whether the Congress will decide to terminate or continue the project in fiscal year 1979 is unclear. In either case, an authorization and appropriation of up to $200 million may be required for fiscal year 1979. In the event of termination, funds will be required to repay the utilities for their contribution to the project, and to pay termination costs on existing contracts in order to avoid or minimize lawsuits against the Federal Government.
A number of plant and capital equipment projects in the proposed fiscal year 1979 budget for nuclear programs would be slowed or curtailed. The committee intends to examine these projects and consider the need for increases in fundincr for certain other projects. The committee's estimate allows for an increase in funding for these projects.
Solar Energy
Substantial progress has been made in bringing all aspects of solar energy technology closer to technology demonstration and ultimately to commercialization. New applications for solar thermal and solar electric systems have been discovered. Most of this progress has resulted from recent Government-funded programs under Congressional mandates contained in the Solar Heating and Cooling Demonstration Act and the Solar Energy Research, Development, and Demonstration Act, both enacted durin(y 1974 in the 93rd Congress. .;\Iuch of the funding for these prooTams has resulted from Congressional increases to the budgets since 1974.
The President's budget request for solar energy programs for fiscal year 1979 does not reflect the commitment needed to make solar energy a significant contributor to our Nation's energy supply. Unfortunately the budget request for solar energy research a nd technology develop I ment does not allow for the initii tion of any new projects or for the expansion of existing programs. The committee has not finished its evaluation of these initiatives but additional funding can be anticipated. The f funding request for solar applications is substantially below






18
the fiscal year 1978 appropriations mark due to a 44 percent cut in the solar heating and cooling demonstration program.
The Administration has indicated that reliance in the future will be placed on tax incentives, rather than demonstrations. The Committee believes that this program should not be phased out until the positive impact of the solar tax credits in the National Energy Act can be verified. The committee budget submittal contemplates additional funds for the continuation of the solar heating and cooling demonstration program and for new initiatives as well as for expansion of the existing programs.
Geothermal Energy
The geothermal program funding request.allows expansion in its five major subprograms. Most projects previously identified by the committee as underfunded are now adequately fu.'ded. However, the committee is interested in ensuring that nonelectrical applications and low temperature geothermal resources for electrical generating uses are given higher priority. The committee budget submittal contemplates additional funding for these areas.
The National Energy Act contemplates a large increase in the lowhead hydroelectric program which is administered by the Division of Geothermal Energy w4hin the Department of Energy. The National Energy Act includes $10 million in fiscal year 1979 for such activities under the Energy Supply Research and Development category. This is included in the committee's budget estimate. Magnetic Fusion
Due to the increased emphasis on near- and mid-term national energy problems, the Magnetic Fusion Program is progressing at a pace below that prior to the Carter Administration fiscal year 1978 revised budget request. The proposed fiscaJ year 1979 operating expenses for the magnetic fusion program do not keep pace with inflation. The committee may add additional funds to insure on-going activities are funded adequately.
In the past the committee has authorized fusion energy projects with the intention of completing the project. Since the fiscal year 1979 budget request does not contain sufficient funding for the program projects, the committee may seek to authorize sufficient funds to maintain the previous project schedules intended by the Congress. Summary
In the committee's judgment the President's proposed fiscal year 1979 budget for Energy Supply-Research ana Development activities is under-funded in a number of areas. On the basis of the committee's review, it estimates that an increase in budget authority of up to $750 million may be required to meet the legitir ate needs of current programs and new programs proposed in the DOE budget for Ener ry S pply --Research and Development. The committee recomIn -n )A is program area.
e T $310 362 000 in budget authority for thi
This fundinff increase includes the pos ible authorization and appropriation of adItional funds for the termination or continuation of the Clinch River Breeder Reactor Project. The projected funding levels for fiscal year 1980-83 would increase at a rate to match the rate of inflation in operating expenses, but would be larger for newly initiated construction projects as the activity levels increase in the later years.






119

3. ENERGY SUPPLY-PRODUCTION) DEMONSTRATION AND DISTRIBUTION
The program area of Energy Supply-Production, Demonstration and Distribution is "oriented toward the development, private sector adoption, production, utilization and distribution of currently available energy resources". Specific activities include:
-Development and production of oil from the Naval Petroleum
and Oil Shale Reserves
-Production and sale of enriched uranium services for use in
nuclear powered electrical generating plants.
-Distribution and sale of electric power in five power marketing
areas.
-Demonstrations or other financial incentives to accelerate the
introduction of new energy supply sources into the market place.
Within this area are the following major programs areas: (a) coal utilization; (b) low-head hydroelectric power; (c) solar energy demonstration; (d) the Leasing Programs Office; (e) uranium resource assessment and (f) uranium enrichment.
The President's proposed budget for fiscal year 1979 would authorize $564,116,000 for Energy Supply-Production, Demonstration, and Distribution. Because of the vital role this program must fulfill, the committee estimates, as discussed herein, an increase of $425,009,000 in the program area.
Coal Utilization
The Senate-House conference on the National Energy Plan legislation has approved those provisions (H.R. 5146) concerning greater utilization of coal and other alternative fuels to natural gas and oil. This measure extends the present programs set forth in the Energy Supply and Environmental Coordination Act of 1974. The fiscal year 1978 budget authority is $3.717 million for utility and industrial coal conversion.
The President's requested fiscal year 1979 budget authority for coal conversion is $2.940 million, despite anticipated new and expanded authorities under H.R. 5146. This program potentially can achieve two-thirds of the oil import saving attributed to the National Energy Plan. Therefore, the committee estimates that the program authorization will be increased by $12.56 million to the full authorization of $15.5 million as provided for in the conference agreement on H. R. 5146.
Impact Aid
The coal conversion portion of the energy conference agreement establishes a program for funding of planning grants and site improvement in areas impacted by coal or uranium development. The bill authorizes $60 million in fiscal year 1979 and $120 million in fiscal year 1980.
The President's proposed budget submission does not provide for funding of this program. The committee estimates funding at the authorized level of $60 million in fiscal year 1979. Zn,
Coal Loan Guarantee Program
The Energy Policy and Conservation Act (Public Law 94-163) authorized $750 million in incentives as loan guarantees to develop new underground coal mines. This program was structured to compliment the coal conversion authorities set forth in the Energy Supply and Environmental Coordination Act of 1974.





nf%
ziv,

Subsequently, in H. R. 5146, the Senate-House conference on National Energy Plan legislation expanded the scope of this program to further encourage new development of low-sulfur coal supplies. Despite continued Congressional support for this program, no budget authority is requested for fiscal year 1979.
The committee estimates $6.870 million in budget authority (at the level requested by the Department from the Office of Management and Budget).
Coal Research Laboratories
The public utility rate reform legislation n pending in conference includes an authorization to the Department to spend up to $30 million in fiscal year 1979 to establish 10 coal research laboratories at institutions of higher learning in States with abundant coal resources. This same authorization is also contained in the Surface Minincr Control and Reclamation Act of 1977 as originally passed. The. committee recommends full funding of Ahis program at $30 million in fiscal year 1979.
Low-Head Hydroelectric Power
The public utility rate legislation pending. in conference authorizes the Secretary of Energy to make loans for studies to determine the feasibility of small hydroelectric development of existing dams and for construction of projects which appear feasible. UD to $10 m *11ion may be loaned for feasibility studies and $100 million for construction loans are authorized for fiscal year 1979. Loans for feasibility studies may be forgiven for projects which prove infeasible. The committee recommends that provision for this program be made in the budget resolution.
Solar Energy Demonstration
Strategies for the commercialization of techniques for using solar energy to replace depletable fossil fuels and electricity generated by the combustion of fossil fuels are expected to receive increasing attention during the remainder of the 95th Congress. The energy conservation portion of the energy legislation pendlg in conference committee reflects a concem that the Federal Government do all it can to foster promising solar techniques on the verge of commercial viability.
Two significant solar commercialization programs which would be authorized by the ]pending legislation imply financial commitments in fiscal year 1979 which do not appear to be adequately accounted for in the President's request.
First, a program to demonstrate solar heating and cooling in Federal buildings is authorized to spend $100 million through fiscal year 1980. The committee believes that a vigorous start should be made to implement this program.
A second initiative provided for in the bill authorizes the purchase of up to 30 megawatts of photovoltaic capacity by the Federal establishment for locations and uses for whic electricity is expensive to provide by other methods. The pending legislation authorizes $98 million for purchase of photovoltaic devices over the 3 fiscal years beginning r after enactment. The President's request does not provide fu ,, for Ehotovoltaic purchases, which is commensurate with this program. T e committee coDsiders it essential that the option be preserved to move forward rapidly with this program.






21

Finally, the Department of Energy has in existence a modest analytical program to evaluate strategies for solar commercialization. This program, which was mandated by the Energy Conservation and Production Act, appears to be quite inadequately supported in the President's request.
Therefore, the committee estimates an increase of $41,600,000 in budget authority in fiscal year 1979 for solar energy demonstration. This would include funds in accordance with the conference agreement on National Energy Plan legislation in the amount of $41.6 million for demonstration of solar heating, and cooling in Federal buildings and $30 million for the purchase of photovoltaic devices. Federal Leasing Programs
Under the DOE Orcranization Act, the Leasing Program Office is charred with the following responsibilities:
(1) Fostering of competition for Federal leases (including prohibition on joint bidding);
(2) Implementation of alternative bidding systems;
(3) Establishment of dilicrence requirements;
(4) Setting of rates of production for Federal leases; and
(5) Specifying the procedures, terms and conditions for the
acquisition and disposition of Federal royalty interests taken in
kind.
So far, the funding for this Office has come from the general funds of the Resource Applications Assistant Secretary. The Department of the Interior intends to ask for a supplemental appropriation of $3 million, which the committee supports. However, if those activities are conducted by the Department of Energy this adjustment in Department of the Interior funds will not be needed. Uranium Resource Assessment
The purpose of the uranium resource assessment program is to assess the nuclear fuel resource base for the United States, and to resolve uncertainties about the extent, availability and economics of domestic resources. The funding requested will be used primarily to support the national uranium resource evaluation (NURE) program which will evaluate domestic uranium resources, as well as thorium resources, in the conterminous United States and Alaska.
The NURE program is a cooperative effort involving the Department of Energy the Geological Survey, State governments, industry and universities. In addition to domestic evaluations, international cooperative efforts will be increased to assess foreign uranium su-PT)Iies for market availability and in support of the administration's nonproliferation activities.
The President's requested $95,200,000 for fiscal year 1979 is to accelerate surface geologic investigations in priority areas, initiate a joint Government/ industry drilling program, accelerate sample analysis, and provide support for international uranium assessment efforts. The committee generally supports the increased level of funding because of the importance of this -resource assessment. However, it is noted that the budget numbers do not include personnel salaries which involve 107 individuals.







Uranium Enrichment
The uranium enrichment activities proposed in the fiscal 'year 1979 budget seem to be funded at an adequate level to achieve the necessary perfection of gas centrifuge technology, and to support the construction of the Portsmouth add-on facility. The revenues expected to accrue to the Department of Energy from enrichment services include $163 million which are anticipated revenues based on enactment of comm rcial pricing legislation in the 95th Congress. Since the Congress rejected a similar legislative proposal in the fiscal year 1978 authorization bill, allowance should be made in the budget resolution for an increase in the Department of Energy authorization total to encompass the possibility that the Congress will again reject enactment of the proposed legislation.
4. POWER MARKETING ADMINISTRATIONS
The Power Marketing Administration market power produced at certain Federal hydroelectric.generating projects in the Un-ited States utilizing high voltage transmission systems. The five Adminisrrations included in this activity are: (a) the Alaska Power Administration;
(b) Bonneville Power Administration; (c) the Southeastern Power Administration; (d) the Southwestern Power Administration; and
(e) the newly formed Western Area Power Administration. The President's budget request includes $127,473,000 for this'prog'ram area which the committee estimates will be increased by $8.4 million for fiscal year 1979, as discussed herein.
In the committee's judgment the Power Marketing Administrations require a greater certainty and stability with respect to their budgets and personnel than does the Department of Energy generally. This need arises from their primary function which is the production and marketing of electric power.
The committee recommends that the budgets of the Power Marketing Administrations not be subject to Department of Energy budget cuts or personnel ceilings. The Administrations are involved in. production and marketing of electric power and therefore require a greater certainty with respect to both their budgets and personnel availability. Traditionally, the Bonneville Power Administration has enjoyed this independence with respect to its budgets. It was the committee's intention that such independence continue after the transfer of this agency to the DOE. Since the functions of BPA axe similar or identical to those of the other Power Market' Administrations, they too should be afforded this independence. Bonneville Power Administration
Bonneville Power Administration (BPA) is the Federal electric power marketing 'agency for the Pacific Northwest assigned to the new Department of Energy, which was created by the Department of Energy Organization Act of 1977. The BPA lost 71 personnel slots to the Department as a result of action by the DOE. The committee recommends that the Department restore these positions to the program.
Westem Area Power Administration
The Western Area Power Administration (WAPA) markets the power and energy generated at Federal generating projects in 14






23

Western States to wholesale customers, constructs transmission facilities in selected areas, and operates and maintains an extensive high voltage transmission system. The President's request for fiscal year 1979 is $103,738,000.
WAPA was created by the Department of Energy Organization Act provision transferring the power functions of the Bureau of Reclamation to the DOE. At its formation, 1,039 positions were transferred to WAPA. Sixty openings also were transferred from the Bureau of Reclamation. However, the DOE chose to reduce the personnel level to its current 940 positions.
It is estimated by WAPA representatives that an additional 236 slots are required, mostly to staff the headquarters office. These slots are not provided for in the 1979 budget. The committee recommends an increase of $8.4 million for such personnel.
5. ENERGY CONSERVATION
General
In order to solve the shortao e of domestic natural gas and petroleum supplies, the administration proposes a substantial reduction in the historical rate of growth in energy consumption. The goal is to achieve an annual energy growth rate of not more than 2 percent by 1985.
The energy conservation programs initiated by the Congress zD Zn
for the Energy Research and Development Administration and in the, Federal Energy Administration have grown rapidly in the last few years. Compared to fiscal year 1978, of $655,283,000 the proposed fiscal year 1979 budget doubles Federal funding for energy conservation to an amount in excess of $1 billion. Energy Extension Service
The legislation creating the Energy Extension Service (Public Law 95-39) specifically stated that no cost sharing with State or local governments can be required unless specifically authorized in a subsequent annual authorization. Title VIII of the fiscal year 1979 authorization bill would delete the cost-sharino- restriction, replaces it with a 50/50 cost-sharing requirement and includes only 50 percent of the funds anticipated for this program. Although it may be the best policy to demand a 50/50 cost-shared program in the future, many States were not warned that this condition would be in effect in fiscal year 1979 and their budgets do not contain the flexibility to start a cost-shared program. As a result, those States will not be able to participate in the program. The committee expects that f till funding will be reinstated for this program and that the matching grants program be phased in after fiscal year 1979.
Ifnergy conservation initiatives involving new regulatory programs, new and expanded grant programs and an enhanced Federal role in demonstrating and encouraging the adoption of energy conserving methods and technology are contained in the energy legislation pending in conference committee. Some of these initiatives have been recognized and adequately funded in the President's budget request. In addition, the President's request generally follows Congressional intent in the funding of energy conservation programs authorized or required under existing law. However, a number of omissions in the President's request are a source of concern to the committee, as are a few areas in which requested funding appears to be less than adequate.





24

The committee expects that vigorous programs meeting the timetables set forth in the energy conservation legislation pending in conference committee will be established. Programs affected include mandatory efficiency standards for new appliances, effective monitoring of the efficiency of energy use and the use of recovered materials in indYustry, and adequate analysis of the potential for energy efficiency improvements in certain industrial equipment through labeling or mandatory standards. The President's request is not adequate in this regard, and additional funding of approximately $12 million may be necessary.
The President's budget request includes $10 million for the purchase of passenger vans by the Federal Government to provide vanpooling for Federal employees. However, such a program has been rejected by the conference on the pending energy legislation. Nevertheless, Federal efforts to encourage vanpooling in the private sector should continue. The committee also feels that funds for departmental activities for evaluating energy conservatien opportunities within the Federal establishment should be more generous than the President has requested.
The committee generally supports the decision of the President to request full funding for the low income weatherization program and for the grant program supporting the development of State energy conservation plans. However, certain grant programs benefiting Statfe and local governments appear to be significantly underfunded in the President's request.
Programs are authorized by the Energy Conservation and Production Act and by the pending energy legislation to address the need for owners of buildings to obtain accurate and reliable audits of energy use. Grants to build the capacity of State energy offices to provide low-cost energy audits to residential, commercial and industrial customers have in the past been, and appear in the fiscal year 1979 request to be, underfunded. The funding level requested for the prograM of grants to municipalities and units of local government to defray the cost of these audits is significantly below the authorization level in the pending energy legislation. The committee anticipates that future Federal conservation efforts will only place additional strains on the capacity to perform such audits, and expects to recommend that the Federal programs to expand this capacity be adequately supported. The committee believes that approximately .$70 million in additional funds may be necessary to meet this need. Utility Rate Reform
Legislation pending in conference requires State utility commissions and large nonregulated utilities to undertake extensive investigations and demonstrations of the applicability of a series of ratemaking concepts. The Department is granted a significantly larger role in participating in the proceedings in which these concepts are considered. Grant programs to provide funds to partially defray the costs of these demonstrations, investigations and proceedings appear to be underfunded in the President's request. The committee expects that as much as $50 to $70 million in additional funds may have to be made available in fiscal year 1979 if the intent of this legislation is to be carried out.





25

Research and development activities have grown rapidly to accommodate the development of technologies which can have a near-term impact on improving the efficiency of energy conversion and consumption and eliminating unnecessary energy use. However, the committee may increase program funding to assure orderly development of marketable technology as well as adequate funding for long-range programs.
Federal Facilities
The committee has not had an opportunity to hold detailed hearings on the Department's proposals to improve the energy efficiency of its own buildings and operations. The proposals requested by- the President appear to be consistent with the intent of Executive Order No. 12003 which sets forth guidelines and policies with respect to renovation of Federal facilities for energy conservation. Taken together, the proposals of the Department have an average payback period of 2.6 years, and appear, therefore, to be quite cost effective.
The committee may not propose increases in fiscal year 1979 funding above the President's request of $37,400,000 for these purposes.
However, the committee wishes to call to the attention of the Budget Committee the statutory requirement for the formulation of a 10-year plan for the implementation of energy conservation measures in Federal facilities. The funds for the renovation of Federal facilities to comply with Executive Order No. 12003 appear in individual agency appropriation requests. As such these monies are reflected in other than the Energy Conservation subfunction. Community Systems Programs
The major objective of DOE's buildings and community systems program is to conduct activities related to more effcieat use of energy in buildings, community systems and consumer products.
In particular the committee is cognizant of the significant potential for energy conservation M the buildings sector and believes that the funding for the buildings and community systems program may need to be increased to support new initiatives and expanded activities in certain areas. In addition, the committee notes that the request does not include funding for the financial support program for municipal waste reprocessing demonstration facilities established in Public Law 95-238.
An increase in the buildings and community systems budget request would be required to fund the municipal waste program at the level authorized by the Congress and to expand other promising programs. Summary
The President's proposed budget for fiscal year 1979 would authorize $1,010,000,000 for energy conservation programs not discussed elsewhere. However, due to omissions of concern to the committee, as discussed herein, an increase of $187,500,000 is estimated in this program area.
6. ENVIRONMENT
The President's proposed budget for fiscal year 1979 would authorize $208,588,000 for environmental programs which are divided into two program activities: Overview and Assessment and Biomedical
24-427-78-3





26

and Environmental Research. As discussed herein, the committee estimates an increase of $21,412,000 for such essential environmental programs within the subfunction Energy Supply. Overview and Assessment
The overview and assessment prga responsible for insuring that the Department of Energy placesh proper emphasis on environmental, health, and safety considerations in formulating and iplementing energy research, development and demonstration decisions, plans and programs. The activities and personnel in this program area, which was transferred from the Energy Research and Devel&opment Administration, now, must meet significantly expanded responsibilities relating to programs transferred from the Federal Energy Administration, the Department of the Interior Federal Power Commission, Department of Housing and Urban Development, Department of Comm ee, and the Navy. However, the budget authority requested for Overview and Assessment for fiscal year 1979 is increased by only one-tenth of 1 percent to $48,650,000 compared to $48,010,000 for fiscal year 1978. In the committee's judgment this funding will not permit the Office of Environment to perform its expanded responsibilities mandated under the Department of Energy Organization Act. Therefore, the -committee estimates that an increase of $4 million may be required for the overview and assessment program. Biomedical and Environmental Research
The primary objective of the biomedical and environmental research program is to support research which will assure that all energy technologies are developed with minimal detrimental impact on human health and the environment. The program activities include performing research needed to determine adverse effects associated with energy technology development, providing offices responsible for the development of energy production technolo gies with the information and cooperation needed to insure environmental acceptability during development and commercialization phases, and providing research data required for estimates of the environmental cost/risk/ benefit tradeoffs involved in development of energy resources and production technologies.
TIhe Pi esident's request for biomedical and environmental research budget authority for fiscal year 1979 reflects a transfer proposed by thc Office of TManagement and Budget of certain research projects from the Department of Energy to kothe Environmental Protection Agency. Trhe details of the transfer have not been agreed upon; however, the committee feels strongly that DOE should continue to have the capability to do research on the health and environmental effects of emerging energy technologies. For this purpose, the committee expects to recommend restoration of funding for some or all of the transferred projects.
Responsibility for studies of the effects of low-level radiation is centered in the Biomedical arnd Environmental Research Division. Recently, the Department announced plans to expand the current DOE health and mortality studly relating to low-level occupational exposures to all its facilities. In addition, the Department would:
(1) esta&ish-] a medical follow-up program for individuals exposed to






27

5 rem or more in any 1-year period; (2) initiate studies relating to Desert Rock nuclear weapons test; and, (3) initiate studies of workers in the nuclear propulsion program at naval shipyards. If approved by the committee such a program would require additional funds. Decontamination and Decommissioning
The overall objective of the Decontamination and Decommissioning programs conducted by the Division of Environmental Control Technology is to reduce the potential environmental hazards asociated with sites and facilities that were once used in the Nation's nuclear programs and which are no longer required or used for this purpose. They include both Government-owned property now surplus to programmatic needs, and private property where activities involving handling of radioactive materials (principally uranium ores) were conducted under Government contract. Decontamination and decommissioning actions are conducted with the goal of minimizing the risks and restoring sites and facilities for alternative beneficial uses. Any residual radioactive materials at these facilities must be properly contained, stabilized, or removed and disposed of so that all potential impacts are reduced to the lowest level practicable.
The President's budget request for this program for fiscal year 1979 is $25 million, an increase of 87 million from fiscal year 1978.
The committee understands that the Department could institute an accelerated decontamination program relating to uranium mill tailings disposal sites with appropriate legislative authority. If such legislation is considered the committee may recommend additional budget authority.
7. EMERGENCY ENERGY PREPAREDNESS
The committee considers this activity an essential role for the Department and applauds evidence of efforts to upgrade the Departments' capabilities. The President's fiscal year 1979 budget request includes $10,590,000 (an 86-percent increase over the fiscal year 1978 estimate for the preparation of contingenev plans and management systems). The committee does not anticipate any signilciant increase in funding for this program area.

8. EMERGENCY ENERGY PREPAREDNESS-STRATEGIC REsERVES
In June 1977, Congress approved the Administration's proposal to accelerate the timetable for achieving 500 million barrels of crude oil storage in the Strategic Petroleum Reserve. The SPR Plan was amended to shorten by 2 years the time required to complete the purchase and storage of that volume of petroleum (December 1980 instead of December 1982). The current fill schedule calls for a storage level of 250 million barrels by the end of 1978.
The fiscal year 1978 appropriation of $2,79S,933,000 plus a supplemental appropriation of 383,173,000, provides funds for the purchase of an estimated 220 million barrels. The Department is considering a second supplemental appropriation request of $115 million in order to secure sufficient fiscal year 1978 funds to purchase an additional 30 million barrels which would bring the total to 250 million barrels by the end of 1978.






28

A decision to seek the second supplemental appropriation in fiscal year 1978 is being held up pending the completion of an evaluation of the volume of oil which will be in storage by the end of 1978. In the event that the target of 250 million barrels by that date is found to be unattainable, the additional funds may not be sought in fiscal year 1978.
The fiscal year 1979 budget request of $4,129,280,000 will provide funding for the purchase of an additional 250 million barrels and its transportation to storage sites. The Department plans to purchase as much as 180 million barrels in fiscal year 1979 and the remaining 70 million barrels in fiscal year 1980. Funds are also provided for the initiation of design and construction of additional storage facilities for 250 million barrels thereby increasing overall storage capacity to 750 million barrels. The administration plans to submit an amendment to the SPR plan which will authorize the storage of 1 billion barrels by 1985.
The committee will review closely these plans for fiscal year 1979 and outyears and may authorize fully the requested funding for the Strategic Petroleum Reserve.
9. ENERGY INFORMATION AND REGULATION
This program area includes three principal agencies: the Energy Information Administration, the Economic Regulatory Administration, and the Federal Energy Regulatory Commission.
For the program area of energy information and regulation the President's proposed budget for fiscal year 1979 would authorize $167,125,000. As discussed herein, the committee estimates an increase of $73,100,000 in budget authority for this program area. Office of Minority Economic Research and Development
The energy conservation legislation pending in conference includes an authorization of $2 million in fiscal year 1979 to the Department for the establishment of an Office of Minority Economic Research and Development. This Office is to provide the Secretary with an analysis of the impact of energy programs-on the minority community and also to serve as a source of information and managerial and technical assistance for minority business enterprises and educational institutions seeking to participate in the programs of the Department. The Office is required to spend no less than 50 percent of its appropriated funds for loans to assist such enterprises or institutions in obtaining contracts with the Department. The committee recommends funding for this office in fiscal year 1979.
ErerjIy Information Administration
The energy information functions of the Department of Energy may be substantially underfunded. The Energy Information Adminisration was established under the Energy Conservation and Production Act as a quasi-independent entity within the Department with a responsibility to serve the energy information needs of the Department, the Congress and the public. This independence is restated min ie Department of Energy Organization Act.
lThe Congress intended, an the DOE Act provides, that an indepnIdent review and assessment of the activities be conducted annually






29

by the professional audit review team (PART). The fiscal year 1979 budget request of EIA to the Secretary of Energy was responsive to the priority areas identified by the first report of PART submit" on December 5, 1977.
Priority areas identified include improvement in the validation of basic data, establishment of analytical capability which can serve the needs of Congress and the public, in addition to the executive branch, without being overloaded with work for the executive branch, and increased efforts to improve the accuracy and credibility of EIA's modeling and forecasting. In each of these areas the Presidenes request is significantly below the needs estimated by the Administrator.
The Congress sought to establish a credible and independent Energy Information Administration. The initial years of operation of this Administration are viewed as critical by the committee in encouraging the establishment of an organization consistent to congressional intent. Because of this, the committee attaches added importance to the views of the Administrator in assessing his budget needs, and expects that additional funding in excess of the President's request may be justified. The committee estimates that up to $34 million in additional funds may be needed to fully support needed programs. Regulatory Activities
The primary mission of the regulatory programs of the Department is implementation of the intent of Congress as represented in a number of relevant statutes, including the Federal Power Act, the Natural Gas Act, the Emergency Petroleum Allocation Act of 1973, the Energy Supply and Environmental Coordination Act of 1974, the Energy Policy and Conservation Act, the Energy Conservation and Production Act, the Emergency Natural Gas Act of 1977 and the Department of Energy Organization Act.
These programs encompass the management of mandatory price and allocation controls on crude oil, residual fuel oil and refined petroleum products, including the monitoring and analysis of the irnp ct of controls, the establishment of just and reasonable natural gas pipeline rates and rates for interstate sales of electric energy at wholesale, the preservation of a sound and competitively viable petroleum industry, the preparation and analysis of contingency programs for use in an energy emergency and a substantial number of other tasks with broad impact on the domestic economy. Economic Regulatory Administration
The regulatory programs of the Economic Regulatory Administration with respect to crude oil, natural gas liquids and refined petroleum products appear to be adequately funded in the President's fiscal year 1979 request of $60,050,000, an, increase of 7.2 percent over the Administration's estimate for fiscal year 1978. The committee, intends to carefully review these programs in hearings in connection, with the annual authorization legislation. Federal Energy Regulatory Commission
The Federal Energy Regulatory Commission (FERQ was established by the Department of Energy Organization Act as an independent adjudicatory body within the Department. The FERC has acquired many of the most difficult regulatory issues f acing the






30

Department, has inherited an unacceptably large backlog, of casesfrom its predecessor, the Federal Power Commission, and will receivesubstantial new responsibilities as a result of the energy legislation currently pending in conference committee.
The Commission estimates that up to $12 million in additional funds ma be required to carry out functions assigned the FERC in pending electric and natural gas utility rate reform legislation and the natural gas pricing bill. The FERC also estimates that a minimum of $23 million in additional funds will be required to strengthen the ability of the FERC, to carry out its functions under existincr law.
These functions include special, one-time tasks such as determination of the tariff for oil transported through the Trans Alaska Pipeline, analysis of the Alaska Natural Gas Project and management analysis of issues processed by the Federal Energy Regulatory Commission. In addition, the President's budget does not appear to adequately account for the fiscal year 1979 pay raise and does not reflect a fiscal year 1978 reprograming request which has been deferred by the House Appropriations Committee.
The committee tentatively concurs with the Commission estimates of its needs. Of particular importance in the view of the committee is the acquisition by the Commission of a capability to streamline processes by identifying common features among groups of filings which contribute to the enormous volume requiring Commission action. If this volume cannot be more effectively handled through use of the results of new generic proceedings or improved management techniques, the likelihood is that further increases in FERC budgetary requirements will result. The committee intends to hold further hearings to examine ways in which the FERC procedures can be improved, and believes that its estimate of approximately $35 inillion in extra funding above the President's request is prudent at this time.
The major objective of the hydro resource program of FERC is to issue and administer the licensing and inspection of hydroelectric projects. Two major tasks are included in this portion of the budget:
(a) water resources analysis and (b) hydroelectric project licenses.
Recent dam failures together with current congressional interest in expanding the hydroelectric potential, especially for existing dams, suggests tb t the darn -safety p ogiam should be expanded.
In addition, if the congressional proposal to stimulate low-head hydro facilities is passed, the pressure on this office will be increased dram at ic- ally.
Therefore, the committee estimate includes $1.2 million to improve the processing of hydroelectric project licenses and for (lam inspection.
In summai-y, the committee recommends a $37.1 million increase in the fiscal, year 1979 budget authority of the Federal Energy Regulatory Commission.






31

10. BASIC SCIENCES
The Department of Energy activities include a number of basic research efforts whose origins are traced back to the Atomic Energy Commission and are most logically placed within the Department of Energy. These basic sciences programs, which are a necessary part of our national commitment to basic research in the physical and life sciences to insure that we continue exploration of the frontiers of knowledge, include life sciences and biomedical research, high energy physics and nuclear physics.
The general support within the budget review process for these programs resulted in an increase in funding for other than life sciences research. The overall operating category increase(] compared to the fiscal year 1978. However, the requested $306,600,000 does not keep pace with inflation. The committee will review whether additional funds for the basic sciences programs can be justified in light of general budgetary constraints.
A preliminary review of the plant and capital equipment expenditures, of $49,800,000 for the basic sciences program indicate in general sufficient support for the new and on-going projects, with only a few possible exceptions. The committee may add as much as $10 million to this program area for those projects.
The President's proposed budget includes $426.3 million in fiscal year 1979 for general science and basic research programs of the Department of Energy. The committee recommends a $10 million increase in budget authority.

11. DEFENSE ATOMIC ENERGY ACTIVITIES
The Committee on Energy and Natural Resources shares jurisdiction with the Committee on Armined Services concerning three programs which have potential implications for c.vilian energy applications. They are Inertial Confinement Fusion, Naval IReactor Development, and Nuclear Materials Security and Safeguards.
At present, the defense aspects of these programs are the principal determinant of the fiscal year 1979 funding level. This committee, however, will review these programs and make its recommendations to the Committee on Armed Services concerning fund(lingr for the civilian applications of these programs.

12. SUMMARY
For the Programs of the Department of Energy, the President's proposed budget for fiscal year 1979 would authorize $12,767,830,000. The committee estimates, as discussed herein and shown in the summary table, a $1,475,421,000 increase in budget authority for the Department of Energy.










DEPARTMENT OF ENERGY

President's
request, Committee Committee
fiscal year estimates, increase
1979 1979 (decrease)

Atomic energy defense activities (053):
Budget 2,829,083 2,829,083
Budget outlays ------------------------------------------------ 2,535,833 2,535,833
General science and basic research (251):
Budget authority ---------------------------------------------- 426,3W 436,300 10,000
Budget outlays ------------------------------------------------ 433,014 443,014 10,000
Departmental operations (276):
Budget authority ---------------------------------------------- 509,860 509,860 -------------Budget outlays ------------------------------------------------ 459,553 459,553
Energy supply: Research and development (271):
Budget authority ---------------------------------------------- 2,670,362 3,420,362 750,000
Budget outlays ------------------------------------------------ 2,628,262 3,128,262 500,000
Energy supply: Production, demonstration, and distribution (271):
Budget authority ---------------------------------------------- 564,116 989,125 425,009
Budget outlays ------------------------------------------------ 603,647 892,647 289,000
Environment (271):
Budget authority ---------------------------------------------- 208,588 230,000 21,412
Budget 201,038 211,038 10,000
Energy conservation (272):
.Budget authority ---------------------------------------------- 1,009,563 1,197,063 187,500
Budget 720,609 870,609 150,000
Power marketing (271):
Budget authority ---------------------------------------------- 127 473 135,873 8,400
Budget outlays ------------------------------------------------- 162:739 163,739 1'O(Q
Emergency preparedness (274):
Budget authority ---------------------------------------------- 4,255,360 4,255,360
Budget outlays ------------------------------------------------ 2,486,409 2,486,409 -------------Energy information and regulation (276):
Budget authority ---------------------------------------------- 167,125 240,225 73,100
Budget outlays ------------------------------------------------ 162,406 212,406 50, OW
Department of Energy, grand total:
Budget authority ---------------------------------------- 12,767,830 14,243,251 1,475,421
Budget outlays ----------------------------------------- 10,393,510 11,403,510 1,010,000












B. DEPARTMENT OF THE INTERIOR
1. ADVISORY COUNCIL ON HISTORIC PRESERVATION
In 1976, the Congress enacted legislation which established the Advisory Council on Historic Preservation as an independent agency in the executive branch. Prior to 1976, the Council, which was created by the Historic Preservation Act of 1966, was staffed by National Park Service personnel.
The Council is responsible for:
1. Advising the President, Executive Agency heads, and the
Congress on needed innovations and modifications in policies, programs, practices, and legislative authorities relating to historic preservation;
2. Administering section 106 of the National Historic Preservation Act relating to the assessment of the public interest in conflicts between Federal agency actions and the preservation of
historic properties; and,
3. Furthering public interest and participation in historic
preservation; Federal, State, local and private preservation activity; training and education in the field of historic preservation; and development and dissemination of preservation
information.
In addition, the Council has statutory mandates relating to international activities, historic railway stations, public buildings, and landmarks threatened by strip mining.
The President's request, proposes $1.553,000 in fiscal year 1979 for salaries and expenses. The committee recommends that this be increased to $2 million as authorized by Public Law 94-422. However the committee wishes to add one clarifying remark regarding the use of a portion of this $2 million. The amount requested by the administration, $1,553,000, contains $369,000 which is earmarked for the Council's proposed new responsibilities for natural area preservation which will presumably be similar to the Council's present responsibilities for historic preservation.
An increase of 10 positions for natural area preservation also has been requested by the Administration. These changes are being proposed in conjunction with the national heritage program (see
Heritage Conservation and Recreation Service).
In the committee's judgment until legislation granting the Council new responsibility is received and considered by this committee the Council should operate under its current statutory mandate.

2. BUREAU OF LAND MANAGEMENT
For years, the Bureau of Land Management, the largest Federal land management agency with jurisdiction over 60 percent of the federally owned land and 20 percent of the Nation's entire land base,
(33)








found its management responsibilities impeded by its dependence on a vast number of outmoded public land laws which were enacted when disposal and largely uncontrolled development of the public domain were the dominant themes. Unlike the Park Service or the Forest Service, the BLM had no "organic act" to guide and provide authority for its actions. With uncertainty as to the continuation of its lands in Federal ownership and the lack of a well-defined mission within its confusing and often contradictory statutory base, the BLM has not been very successful in the competition for scarce Federal land management funds. However, on October 21, 1976, the President signed into law an organic act for the BLM-the Federal Land Policy and Management Act of 1976 (FLPMA)-which repealed many of the outmoded public land laws and provided the agency with a coherent mandate and sufficient authority to implement it. Also, in 1976, the Congress passed the Payment in Lieu of Taxes Act (PILT Act).
In response to these acts, in fiscal year 1977 the Interior Department reprogramed $4.1 million to meet the most urgent mandates of thb FLPMA and requested a $100 million supplemental for the PILT Act. For fiscal year 1978, Presidents Ford and Carter asked for $14,550,000 in increases to meet the requirements of the Organic Act ($44,550,000) and the PILT Act ($100 million). Last year this committee requested a $42,470,000 increase over the President's fiscal year 1978 request and the appropriation process resulted in a $10,366,000 increase. For fiscal year 1979, the President has asked for an increase ($52,086,000) in the agency's budget over the prior year's appropriation. The magnitude of this increase is actually less than it appears, however, because much of it is accounted for in a change in financing of "firefighting and rehabilitation". Starting with fiscal year 1979, this item will be financed in the initial appropriation rather than in a supplemental appropriation which has been the normal funding practice in prior years. This financing change amounts to an apparent increase of $25,250,000 that does not provide any real program growth. When this financing change is subtracted, the actual program increase proposed is $26,836,000 over the fiscal Year 1978 appropriation.
The committee concurs with the increased emphasis being placed on the Bureau's funding needs, but does believe that the fiscal year 1979 budget proposal is inadequate. Section 318 of FLPMA required the Secretary of the Interior to submit last year a proposal for a 4 year (fiscal years 1979 to 1982) authorization for most of the Bureau's programs. This proposal was tc include funding levels which the Secretary "determines can be efficiently and effectively utilized in the execution of his responsibilities for each such program, function, or activity, notwithstanding any budget guidelines or limitations imposed by any official or agency of the executive branch." The Secretary's submission (S. 2234) calls for $100,100,000 more in the comparable budget items in fiscal year 1979 than does the President's budget request. The committee agrees that the Bureau "can effectively and efficiently" use additional funds in certain budget categories, principally for renewable resource planning and management, and makes recommendations for additions to those categories.
In sum, the committee recommends additions which would add $90,867,000 to the $485,924,000 fiscal year.1979 BLM budget request for a new total of $576,791,000, This committee's recommended








increases above the President's proposal are $9,233,000 less than the total increase over the President's proposal contained in the request for fiscal year 1979 made by the Secretary of the Interior in his quadrennial BLM budget request.
The funding increases recommended by this committee will be largely meaningless unless full time permanent personnel ceilings are increased commensurate with them.
Additional ceilings which should be associated with the recommended funding increases are shown in the following table:
BUREAU OF LAND MANAGEMENT
Amount Ceilings
(thousands) (FTP)
Management of lands and resources:
Renewable resources management:
Range management------------------------------------------------ $9, 928 133
Recreation management--------------------------------------------- 3, 100 43
Soil, water and air ------------------------------------------------- 2, 5G0 48
Wildlife habitat---------------------------------------------------- 2,300 40
Energy and minerals management: Energy offshore---------------------------- 23, 102 ------Planning and data management:
Planning--------------------------------------------------------- 2,500 71
Data management-------------------------------------------------- 4,000 51
Acquisition, construction, and maintenance-------------------------------------- 3,437 35
Mineral impact development loans ------------------------------------------- 40, 000 10
Total, Bureau of Land Management ------------------------------------- 90, 864 481

Management of Lands and Reso'urces
rrhe most critical budgetary needs of the BLMN are found in the MIanagement of Lands a-nd Resources appropriation account. The committee recommends an addition of $47,430,00tth $253800
total proposed for this budget category in fiscal year 1979. Ren ewable Resou~rce Development, Protection and Management
The seriously deteriorated state of the BLM.'s land base was disclosed in retaill in the agency's 1975 Range Condition Report to the Senate Appropriations Committee (discussed above). These findings were reiterated in the July 5, 1977, GAO report, Public Rangelands Continue to Deteriorate. In addition, the various provisions of FLPMNA require the Agency to place increased emphasis on this category. The Committee recommends increases over the President's request of $90,301,000 for this subcategory in four items for a total addition of $17,828,000.
Range Managerpent.-This committee has been particularly concerned with the deteriorated state of the BLM range. Last Congress, the Senate passed the National Rangelands Policy Act which authorized a 30 year, $900 million program (similar to the 20 year program proposed by the BLMU in the Report) to rehabilitate BLM rangelands.
The only provision enacted into law last Congress directly affecting range rehabilitation work was section 401 of FLPMA which raised from 25 percent to 50 percent the amount of grazing fees to be used for range improvements. The purpose of this provision was to increase Federal expenditures for grazing land improvements in the Range Improvement Fund not simply to offset future reductions in direct appropriations for that purpose. However, as the Interior Secretary, prior to the passage of FLPMA, had used his discretionary authority






36

to allocate over 40 percent of the grazing fees to range improvements, this provision dlid not dramatically increase the funding of range work. In fact, even with the proposed increase in the level of grazing fees this year, section 401 could be expected to add only $700,000 to the moneys available for range improvement in fiscal year 1979-far less than the average of $30 million which would be authorized annually in the National Rangelands Policy Act. The committee expects to report a range rehabilitation measure again this Congress (see Legislative Action Items).
As the proposed $31,357,000 "range management" budget item is identical to the 1978 appropriation, this item would suffer a reduction in real dollars due to inflation. Even when the $10 million total of the separate Range Improvements- categpory (the 50 percent of grazing fees in the Range Improvement Fund) is considered the total increase in funding for range management over the fiscal year 1978 appropriation level is only $1,728,000. In all probability, this increase will not be realized because the House has passed, and the Congress will almost certainly enact, a moratorium on the increase in the public land grazing fees for this year's grazing season (see Legislative Action Items).. The entire $1,728,000 increase is dependent on the receipts from that contemplated increase in grazing fees.
Some range improvement work is constrained by the NRDC v. Morton suit until completion of the Allotment Management Plan Environmental Impact Statements required by the court order. The Department has stated, however, that certain range improvement work which does not significantly affect the environment can be, undertaken. The Committee believes that such work should proceed as expeditiously as possible so as to prevent unnecessary further environmental degradation of BLM rangelands and unnecessary curtailments in range use. Furthermore, the committee wishes to provide the BL"M with all the funds it can effectively use to expedite the Allotment Management Plans preparation process so that needed, well-planned range improvements and rehabilitation work now circumnscribed by the court order may be begun at the earliest opportunity.
Accordingly, pending enactment of a rangelands rehabilitation bill. this year, the committee recommends an increase of $9,928,000 in the proposed $31,357,000 budget for the range management item.
A sum of $1,728,000 would be added to replace the $1,728,000 which the BLM\ expected to be added to the Range Improvement Fund by the receipts from the proposed increase in the level of public land grazing fees but which Congress will1 likely deny to the agency by the enactment of a moratorium bill. A total of $6,900,000 would also be added to this budget item to provide for a modest acceleration of range improvement work to halt deterioration of BL.M range in critical condition and to increase the Bureau's capability to undertake the type of range rehabilitation program which wNould be required by the proposed range rehabilitation bill. The additional funds would be allocated as follows: $500,000 for environmental assessment; $3,400,000 for project development; $1 million for maintenance; and $2 million for use supervision. Finally, $1,300,000 should be added to this budget item for wild horse and burro inventories and research (ineluding research on temporary sterilization techniques). In oversight






37

hearings on the Wild, Free Roaming Horses and Burros Act of 1971, this committee has repeatedly urged the agency to improve its management of the animals so as to avoid unnecessary damage to the range from overpopulation. The committee has requested more accurate population counts and research, particularly on innovative methods of controlling herd increases, as prerequisites to better management.
Recreation Resource M1anagement.-The committee recommends an addition of $3,100,000 to the proposed fiscal year 1979 budget total of $17,548,000 for this item. This addition would partially fulfill this committee's continual requests for significant increases in Federal land management agencies' recreation budgets. To provide a sufficient level of interim management for the California Desert to protect its resources pending completion of the plan required by FLPMA, an additional $1,400,000 is recommended. An increase of $1,200,000 is recommended to permit the Bureau to designate an additional 10 million acres as areas open, closed, or restricted for off-road vehicles in accordance with the President's Executive order. This will allow the agency to maintain a schedule which will result in the designation and management of all lands concerning ORV use by 1987. To increase the acreage covered by inventory plans and interim management of caves and paleontological and unique biotic phenomena from 30 million to 35 million acres an increase of $100,000 is recommended. Finally, an additional $400,000 is recommended for interim management of studlying of, and planning for nationally significant rivers and trails on a schedule which would result in the preparation and implementation of 400 plans by 1982. The proposed increase in fiscal year 1979 would permit the preparation of 40 more plans than the 100 prepared in fiscal year 1978.
All of these recommended increases in the recreation management budget item are identical to the increases proposed for fiscal year 1979 in the quadrennial BLM authorization submittal of the Secretary of the Interior.
Soil, i after and Air.-This budget item covers much of the Bureau's inventory work. By the Bureau's own admission (supported by numerous GAO reports), the agency's resource data base is woefully inadequate for the aggressive planning efforts that FLP IA and other recent statutes, and XIRDC v. Morton and other recent court decisions, demand. If the Bureau were to attempt to plan, and prepare ETS's on its planning, with the present data base, there is little question that court suits would follow and decisions on the adequacy of the EIS's would go against the Bureau, thus delaying further much of the Bureau's actual, on-the-ground program work. The President's proposal for a $4,031,000 increase over the fiscal year 1978 appropriation embodies recognition of the need to expand the resource inventory effort, and to do so quickly so as to permit the agency to meat statutory and court-ordered planning deadlines. However, the Secretary proposed a much greater increase-$6,100,000-for this budget iteni in fiscal year 1979 in his quadrennial BLIM authorization submittal.
The committee believes that, to encourage the fastest possible
1
inning effort as discussed above in the range management item, a further increase of $2,500,000, or a total increase of G6,531,000, approximately the Secretary's request in his 4-year ELM authorization submission, is reouired. This would raise the President's proposal of $15,324,000 to $18,024,000.








Wildlife Habitat Management .-T he committee recommends that $2,300,000 be added to the $8,120,000 requested by the President for
this budget item. The President's request contained a program increase of $1,500,000 but the Secretary of Interior requested a $3,500,000 increase in fiscal year 1979 in his quadrennial BLM authorization submittal. The committee supports the full $3,500,000 increase requested by the Secretary. Testimony in -the November 23, 1977, oversight hearings on the Sikes Act conducted by the Subcommittee. on Resource Protection of the Committee on Environment and Public Works confirmed that the States are fully ready to expend additional wildlife habitat funding. The committee emphasizes that the pro-posed increase can be easily absorbed as this is one program area where plans are completed despite critically low personnel ceilings because the habitat improvement work under Sikes Act cooperative agreements is largely conducted by the States or under contract. This recommendation to increase this budget item by 43 percent over the President's proposal and 78 percent over the fiscal year 1978 level is, made necessary by the long neglect of wildlife-particularly wildlife, habitat on public lands-in the Federal budget. About 40 percent of the wildlife and fish habitat on BLM land is in unacceptable condition. The percent decline from satisfactory condition to unsatisfactory condiition is about 3 to 4 percent annually and there is a concomitant declined inj wildlife populations. The current level of funding of about one penny per acre for wildlife habitat management programs (does not permit BLM to meet its responsibilities. A small portion of the recommend~edl increase ($300,000) will be used to insure that wildlife inventorying efforts will keep pace with the expedited soil, air, and water inventorying efforts, and various expedited planning efforts, particularly the allotment management plans preparation activities, which the committee seeks to encourage elsewhere in this budget recommend ation.
Energy and Minerals Management
The President has requested reductions from the 1978 appropriation level in the agency's energy minerals program of $16,959,000, (-$465,000 in Energy Onshore; -$18,104,000 in Energy Offshore; and +$1,610,000 in Nonenergy Onshore) from the fiscal year 1978 apJproprlation level and $20,087,000 from the fisce. year 1978 base. Tlhe cOmmit tee recommends an i ncease of $23,102,000 Over the President's $78,619,000 Energy and Minerals Management request.
Energy Onshore.-The entire reduction in the Energy Onshore category is in the coal leasing program. Trhe coal program is reduced by $1,750,000 from the fiscal year 1978 appropriation level of $19,102,000.
Although the committee makes no recommendation to restore the cut in the coal leasing program at this time, it notes that it will promptly urge an increase in the appropriation, or paSage Of a supplemental appropriation if the Pe ii-eat's request should" prove insufficient to administer the program once its funding needs are better known.
Energy Offshore.-The President's budget would reduce the Outer Continental Shelf ba-seline. studies program by $23,102,000 from the fiscal year 1979 base. This reduction is partially offset by an increase of $4,600,000 for oil transportation studies, for a net reduction of






39

$18,500,000 from the fiscal year 1979 base and $18,104,000 from the fiscal year 1978 appropriation level.
This program was assessed recently by the Commission on Natural Resources of the National Research Council in a report entitled "OCS Oil an~d Gas: An Assessment of the Department of the Interior Environmental Studies Program." The report makes numerous recommendations for changes in emphasis in the program from baseline to special studies and in its administration and management. However it does not recommend reductions in the program.
A House-Senate conference will be convened shortly on 5. 9, a hill which would amend the Outer Continental Shelf Lands Act to make numerous changes in the offshore oil and gas leasing program and to protect the marine and coastal environment. This bill would require significant additional environmental studies. It seems imprudent to the committee to reduce the BLM\, research budget at the very time the Congress is expected to expand research requirements. The committee would prefer to see these research funds remain in BLTM's funding base and be reprogramed to more important, high priority special studies to assure that the absence of such studies does not delay offshore oil and gas leasing and development and to minimize the possibility of court suits which might delays such development.
Accordingly, the committee recommends an increase in the President's $39,398,000 budget request, of $23,102,000 to restore the budget, item to the fiscal year 1978 appropriation level adjusted for salary increases, as well as p~rovidle for financing of oil transportation studies.
Planning and Data Managm ,,ent
The Federal Land Policy and Management Act of 1976 (FLPMA) placed particular emphasis on multiple use planning an emphas"S; which the committee does inot find reflected in the fiscal year 1979 budget proposal of $23,743,000. The President's proposal reduces this subcategory by $1,044,000 from the fiscal year 1978 appropriation level and by $S6,044,000 from the fiscal year 1979 request of the Interior Secretary in the quadrennial BLM authorization submission.
The committee proposes an addition of $6,500,000 to the President's request.
Planning for Muvltiple Use.-To insure that the various FLPMA and court-ordered planning deadlines are met and, if possible, exceeded in a true multiple-use planning context the committee recoinmends a $2,500,000 increase in thie Planning for M.%ultiple Use budget item. This increase is idIentical to that requested by the Secretary of the Interior in his quadrennial BLMI authorization submission. The increase would permit a slight acceleration in the present Management Framework Plan (MEP) preparation schedule and allow thie BEM to focus on those lands subject to intensive energy development. Although approximately 80 percent of the BEM lands (excluding Alaska) are covered 1w MFP's many of the plans do not adequately assess soil, watershed, and other environmental values. In short, the plans are of widely varying quality because the first generation documents were prepared with limited resource inventory data, as discussed above. The Bureau has found that its plans have an avera-ge effective life of 4 to 6 years and has stated that it is finding the need for major revision in priority areas (e.g., areas requiring coal leasing





An

range rehabilitation, timber sales, and wilderness review program action) to be greater than the need for new plans in the planning units not yet reached. The recommended increase would permit the Bureau to accelerate preparation of MFP's from the present 8-year cycle to a 6-year cycle and to meet planning priorities in the coal, range, timber and wilderness program areas.
Data Management.-The Secretary proposed for fiscal year 1979 in his quadrennial BLM authorization submittal an increase in the data management item of $4,400,000 for development and implementation of automated data systems. The President proposed an increase of only $287,000 in this item over the fiscal year 1978 appropriation simply to cover salary increases.
The committee recommends an additional increase of $4 million over the President's fiscal year 1979 proposal. This recommended increase is less than the Secretary's request in his quadrennial BLM authorization submittal because of schedule slippage that has occurred and will occur as a result of uncertainty over the funding of this item.
Acquisition and operation of these data systems is critical to the BLM's planning efforts. It does no good to conduct resource inventories if the data obtained is not accessible to the planner. Without the data, the planner's work will likely not be sustained under judicial challenge. Presently, the BLM's data, inadequate though it may be, are not easily accessible to the planner. The data from the various resource inventories are often not compatible and may be situated in any of numerous Bureau offices. These data systems would be designed to synthesize and evaluate the data and retrieve it quickly for various users. If the Bureau is to meet or exceed its planning deadlines the automated data systems must be installed promptly. The increase should not be postponed until the fiscal year 1980 budget.
Acquisition, Construction and Maintenance
The committee recommends an addition of $3,437,000 to the President's $17,683,000 request for this budget category. The President's request is $1,024,000 less than the fiscal year 1978 appropriation level.
Acquisition, Construction and M1aintenance.-The President has proposed an increase of $198,000 in this category. This sum is $2,502,000 less than the proposed increase contained in the Interior Secretary's quadrennial BLM authorization submission. Those additional funds were for the construction of the Phase I Boise Interagency Fire Center.
The Committee recommends an increase of $2,502,000 to insure construction on schedule. To delay expenditures for better fire protection is regarded by the committee as a false economy.
The BLM has a large backlog of critically needed recreation construction. Without such construction, resource and environmental values will continue to suffer adverse impacts from heavy recreation use. The committee recommends an addition of $735,000 to the $580,000 in the President's fiscal year 1979 budget request.
lJhijj increase woulh include $150,000 for survey and design; and $585,000 for construction of sanitary facilities in the Blanca Waterfowl Area, Colorado; cave protection facilities at various sites in New Mexico; viewpoint facilities at Kaiger Gorge, Oregon; and facilities at Clear- Creek Camp, California.





41

Acqausition.-The President's fiscal year 1979 proposal calls for no increase in the acquisition subcategory, whereas the Secretary proposed a $200,000 increase for fiscal year 1979 in his quadrennial BLM authorization submittal. Section 205(a) of FLPMA originated in this committee out of concern for the lack of access for the public, timber purchasers and other users to vast acreages of the BLM lands which are effectively landlocked by private lands. This provision was drafted in the expectation that it would spur the agency to more aggressively acquire access easements. The lack of an increase in the fiscal year 1979 budget proposal would prohibit any such effort. Accordingly, the committee recommends the $200,000 increase requested by the Secretary in his quadrennial BLX authorization submittal. These additional funds would permit acquisition of 30 additional easements providing access to 150,000 acres.
Aincral Developme nt Impact Loans
Section 317(c) of the Federal Land Policy and MNanagement Act of 1976 (FLPMA) establishes a program to provide loans to State and local governments which will be required to increase their expenditures to mitigate adverse, social, economic and environmental impacts from mineral leasing on public lands. The purpose is to insure that these governments will have the capability to plan and act ahead of these impacts and will not be faced b the necessity of simply reacting to those impacts with their share of Federal leasing moneys.
President Carter proposed a $40 million addition to President Ford's fiscal year 1978 budget request to fund this program, He conditioned it, however, on the enactment of legislation to raise the loan interest rate above the 3 percent provided in FLPMA.
On January 27, 1977, Senators Metcalf and Iaskell, chairmen of the relevant subcommittees, and Senator Hansen, ranking minority member of the committee, wrote Interior Secretary Cecil Andrus pledging their support for the enactment of such an amendment to FLPMA. The Administration's proposal was submitted on August 31, 1977. The Subcommittee on Energy Production and Supply has completed hearings on the coal leasing program during which this legislation was addressed. Although the committee is not prepared to render its support for any specific provision of the Administration's proposal, it does expect to report legislation which will raise the interest rate (see Legislative Action Items).
Accordingly, the committee recommends that $40 million be added to the Bureau of Land Management fiscal year 1979 budget under a new category entitled "Mineral Impact Loan Assistance."
3. BUREAU OF MINES
In fiscal year 1978, Congress authorized $203,040,000 for the programs of the Bureau of Mines. These programs are organized around the three basic missions assigned the Bureau by Congress: (1) scientific and technological investigations; (2) collection and dissemination of mineral information; and (3) analysis and recommendations of U.S. mineral policies and programs.
Although the missions of the Bureau remain unchanged, its program responsibilities have been reduced pursuant to the Federal Surface
24-427-78----4





42

Mining Control and Reclamation Act (Public Law 95-87) and the Department of Energy Organization Act (Publi6 Law 95-91).
Research programs involving the examination of environmental effects of surface mining for coal have been transferred to the new Office of Surface Mining Reclamation and Enforcement. Similarly, there has been a shift of research and development programs aimed at increasing the productivity of solid fuel minerals to the new Department of Energy.
The President's budget request of $121,329,000 for fiscal year 1979 reflects the transfer of these programs. In addition, however, several ongoing environmental programs which the committee views as bemig particularly significant for the long-term balancing of national mineral needs against the need to preserve and enhance environmental values have been reduced or held at existing levels of funding.
The committee recommends a fiscal year 1979 budget authority of $123,229,000 to adequately fund these ongoing programs.
The recommended increase of $1,900,000 occurs in three areas. First, the committee recommends restoration of $1 million to maintain the environmental engineering systems program at its existing funding levels. The environmental engineering systems program perform baseline studies and investigations designed to assist State agencies where decisions must be made on permitting mining operations on large areas of land.
Second, in the Data Collection and Analysis area the committee recommends an increase of $450,000 and 8 positions for the coordination of two programs which are vitally important to the assessment of national mineral resources and the projection of national mineral reserves. One program is the Mineral Availability System (MAS) of the Bureau. The other program is a related but independent program within the Geological Survey, the Computerized Resources Information Bank (CRIB).
The committee believes MAS is a potentially significant tool for mineral policy formation and resources management which has failed to achieve its potential. MAS, originally funded in 1972, could serve as a policy-related analytic aid, a management tool for structuring mineral data, gathering and analysis, and a mechanism for determining information priorities.
Responsibility for the failure to measure up to this standard appears attributable to ihe unsatisfactory organizational structure and location of MAS within the Bureau and more fundamentally, what has been termed "a basic lack of administrative recognition in the importance and usefulness of the system."
The Bureau reportedly has completed in-house evaluations of MAS and incorporated the results into its 5-year plan. However, the committee believes that a more effective approach would be to conduct a reevaluation jointly with the Geological Survey in order to establish an on-going coordinating system designed to bring about the meshing of the two prcrrrams in such a way as to assure ready access to data for the general public and for departmental decislionmakers.
Third, under the heading of Mineral Lands Assessment the Committee recommends an addAional 15 full-ti e sonnel and $450,000.
M Fc"slation (Public Law
This increase is necessary because recent egi
95-150, Montana Wilderness Study Act of 1977, and the Endangered






43

American Wilderness Act of 1978, now before the President for signature) has increased the acreage requiring mineral assessments. Public Law 95-150 provides for wilderness suitability review of nine areas totaling 973,000 acres to be completed by 1982. The Endangered American Wilderness Act of 1978 designates 17 areas for wilderness, a total of 1.3 million acres. Of the 17 all but the Gospel-Hump area in Idaho (206,000 acres) and the Spruce Creek Addition in Colorado (about 8,000 acres) need to have a mineral assessment study completed by 1983. The Gospel-Hump area must be completed by 1988 and the Spruce Creek Addition adjoining the Hunter-Fryingpan Wilderness must be completed by 1980.
The Bureau continues to be handicapped due to a trend toward increased sponsoring a-rd financing of its research and data collection and analysis activities through contracts and grants. The depleted in-house capability resulting from this policy has caused conflict-ofinterest problems, especially regarding foreign mineral reserves data collection. In the ]cnger perspective, it has also shut off the flow of younger personnel into the ranks of the Bureau. Thus, as the median age level rises, the danger of severe depletion of competent and experienced staffing becomes even more real.
Unfortunately, personnel levels have remained virtually static within the Bureau. In its fiscal year 1978 budget report the committee had emphasized the risk involved in a eontinuation of this reliance upon contracts and grants when it stated that "an in-house capability must be maintained to keep abreast of new technologies developed under contract so that the advaucetl technologies may be directed toward the most useful areas of inquiry ani work in further contracts of in-house efforts."
The committee is still of the same opinion. It therefore recommends that the Bureau's personnel ceiling be further increased by 20 positions to work in the mining environmental research program.

4. BUREAU OF RECLAMATION
Overview
The basic objectives of the Federal Reclamation Program are to assist the States, local governments, and other Federal agencies to stabilize and stimulate local and regional economies, enhance and protect the environment, and improve the quality of life through the (levelopr ent of water and related land resources throughout the 17 Western States and Hawaii.
Reclamation projects, through a mtiltiple-p urpose concept, provide for some or all of the following benefits: municipal and industrial water supply, hydroelectric power generation, irrigation water service, water quality improvement, fish and wildlife enhancement, outdoor recreation, flood control, navigation, river regulation and control and related uses. Through contractual agreements with project beneficiaries, the Bureau arranges for repayment to the Government of reimbursable project costs resulting from construction, operation, and maintenance. Approximately 84 percent of all project costs are reimbursable. Interest is paid on costs allocated to power and to municipal and industrial water service.
Major functions of the Bureau include: (a) investigation and development of plans for the regulation, conservation, and utilization of water and related resources (including basin-wide wat er studies






44

and new sources of fresh water supplies, power capacity, and energy);
(b) research programs to maximize the use of resources, including weather modification; (c) design and construction of authorized projects for which the Congress has appropriated funds; (d) repair and rehabilitation of existing projects; (e) operation and maintenance of Bureau constructed facilities which are not transferred to local organizations; (f) review of operation and maintenance of Bureau built facilities which have been transferred to local organizations;
(g) administration of the Small Reclamation Projects Act of 1956, and of loans for construction or rehabilitation of irrigation systems; and (h) negotiation, execution, and administration of the various contracts associated with the reclamation program.
In 1976, Reclamation projects served municipal and industrial water to 16.1 million people in the Western States, served irrigation water to 9.4 million acres on 146,000 farms, produced crops with a gross value of $4.3 billion, produced 41.8 billion kilowatt-hours of electricity, and hosted 62.4 milllon visitor days at project related recreation facilities.
Bureau facilities include 174 operating projects consisting of 320 storage facilities 344 diversion dams, 14,400 miles of canals, 145 pumping plants, 50 powerplants, and numerous other major features. Reclamation electric generating facilities have an installed capacity in excess of 9.7 milllon kilowatts or the equivalent of 97 average sized nuclear powerplants.
For the past decade there has been a reluctance on the part of the various Administrations to further commit the Bureau of Reclamation to the construction of additional reclamation/irrigation projects. Noted for their absence have been requests by the Administrations for the authorization of projects or the authorization of feasibility stu(lies which would lead to structural solutions to problems of water supply and demand. Although recent appropriations requests have been the largest in the history of the program, the funds appropriated, have served to complete on-going construction projects and in effect phase out the program. Emphasis within the reclamation program is shifting from a construction orientation to that of caretaker. Of the 18 new study starts proposed in the Budget request for fiscal year 1979, all are concerned with examining the potential hydroelectric development at existing facilities or expanding hydroelectric powerplants. In the aftermath of the worst drought in decades, there are no requests for funds to initiate drought related water supply/ water management investigations.
At best, the Federal reclamation program is in a holding pattern. Controversy surrounds many aspects of the program and the Administration is (Ieeply committed to an analysis and redefinition of National water priorities. Until such time that the Administration and the Congress determine basic policy or that unforeseen demands for ad(litional water supplies dictate structural solutions, program and funding levels will reflect inertia rather than initiative.
rhe committee recommends that the Bureau of Reclamation program for fiscal year 1979 be increased by $111 million above the President's request of $622.4 million in the following program areas.






4


a
The :Z--,Wn, the economic
neei i n( ,I t 0 c I _11--C., 0i 11I,0Fo- yea l, 167 11 1 )_! W.
MALon. Tli _, for further
Funding of an-e, tical _wi zkc e ss, i,
in the future capabAit-v of fl e Bkirea-J a m a 4L 1on n b e'- i
to move con 41*Uction on a tinj(2'v in 10 lu
and national -rleeds. 1 Pi,,-*Jent! L cci-1'_(,. I
for t' zc-al ye--ir 1 (17 4 2 2. Y"o-",t all OW
c On L 'n I 1a t i on 0f inon.- elt"') 11 r a u e
the f-onintiltte,-, I, 7-7
I Ii79 to i'-(.e1i_,!,Jt(1 t 11
to both V,-ZIT 1 1 A'. 1 t M,"-. Lt reeomm _,Mks an .'n
C),- a J
Thi_ P-11,ocr1laili 11-Z tile i-nreJ __,-Zie _'t c n Y_,, i the Agen(-v s )l I
(If of (.()I, on areClaimition projeft-- F, a I A ar 107S, tl e Con n
550.6 il inT1 e W z, 1) 1) ropri a t on, z. The PF, en t'< e t
in new appropriatlol.-- for fiscal year 1979 [' 4,.,() Inillion wotld allow, cont*nied con-ti-ol-,on on 4 e e:, not
include f-,in(! _- for the A i i1wmL Dam p D 0 T Cz,, Divei, -ion 17,fl:t in _N, a.
Lc),A-evo'. re, C'! r), ffe i le
the o c) r t i i i t i i tL r 11 t 0
The t t e i-)ehei-e- 1 i t T 1 be
allowe(l in fi- -al year 1 9 t 1) e i- i C C) !'I 0 01, 0 ther
projects in t.)(, eve:it t'la, -_ I i l
T"-(-- o-e.
the commit--ce reconm,_ Ii, I zi l.,j. of $555 '1'-',,_)n i-_ Otauthoritv.
In ad ition, the Prezi(lentz budcret rf-(iL-Lo-.:t doe ncjt n,21-, pro-\-i4zion for acceleration of on-(roin(r cnn. 4-rlirt,,-i cr ofconstruction on project ; for wli*f-.11 planning been
(10111 ieted du.Linz the lzittei, ),ii-t of 19TS or 1979.
Tl .e committee belie%-e that zin
Uj)j),cr C'Olora,!o P Pro cct
Thi>- bi ('.(rot cate -orx for adv--nced
Z
oi)a.r itio-n,,indii-iaintenan(-eof III -c
t ezfor the a generation oi ele! ti-city. For 11_7'
aj)j)roj)1,iated S67.3 in new The Pre, 1 T-,
budLet reque-t in new ai)i)iv,-)i,-aton,_, for r- zcal yezir 1979 va1-ced
planning will be comiJ"eted prior to or durin- fiscal year 1979 and to
on-goincr conSItruction. o: -econlacce!er, the conu-nit
mencis an additional $12 1-nillion. fo- the program.
s a-: o r, a t e d Wi
This budget catea-orv proN-,de z for facilit-ie 4-h feature
I
of the Upper Colorado Rivei stoi:a,-- -e projec-t. The. fiscal yea-1 1978






46

appropriation was $4 million. The President's budget request for fiscal year 1979 also is $4 million. This program has been severely underfunded for several years and the committee recommends an additional $11 million in order that the program may provide for increased demands in the area in a more timely manner,
Loan Program
This budget category provides for funding pursuant to the Small Reclamation Projects Act of loans or grants to non-Federal organizations for construction or rehabilitation of small water resource projects. In addition, pursuant to the Distribution Systems Loan Act, loans can be made to organizations for the construction of irrigation and municipal/industrial water supply systems on authorized Federal projects. The Congress appropriated $27.7 million for fiscal year 1978. For fiscal year 1979, the President has requested $23 million. Of the 10 projects underway, the President's request would provide funding for completion of seven.
In the 22 years that the program has been in operation, 54 projects have been completed with loans totaling $114 million. An additional 34 projects are under active consideration; however, the President's budget request for fiscal year 1979 does not include funding for initiation of any new projects. In light of the strong support evidenced by the water community for the program and on the basis of the importance of the program to water conservation efforts, the committee recommends the addition of at least $17 million for fiscal year 1979 to allow new project starts.
5. HERITAGE CONSERVATION AND RECREATION SERVICE
On January 30, 1978, Interior Secretary Andrus established the Heritage Conservation and Recreation Service (HCRS), formerly the Bureau of Outdoor Recreation (BOR). This action consolidates the former functions of the BOR with the NPS's Natural Landmarks Program and the Office of Archeology and Historic Preservation. The HCRS is to be the focal point within the Federal Government for the National Heritage Program requested by the President in his 1977 Environmental Message. The HCRS will administer three major programs:
Recreation: HCRS will continue to administer the Land and
Water Conservation Fund, formerly administered by BOR. This includes the State grants-in-aid program for outdoor recreation
as well as the Federal portion of the fund.
Cultural: HCRS will administer the Historic Preservation Fund,
manage the National Register of Historic Places, and assume all other historic preservation functions formerly administered by
the NPS.
Nat aral: HCRS will create and manage a new National Register
of Natural Areas similar to the existing National Register of
tIistoric Places.
The goal of HC(IRS over the next 5 years is to identify, select, and protect eligible heritage resources in partnership with State and local governments. In order to carry out this goal: (1) criteria for "national significance" of natural and cultural areas must be prepared by the






47

Secretary; (2) programmatic consolidation of historic and various natural area functions at the Federal level is contemplated within the next 3 years; (3) the Council on Historic Preservation is to be reconstituted and expanded into the Council on Heritage Conservation; and, (4) significant amounts of state-side money from the Land and Water Conservation Fund will be directed for the acquisition of natural areas.
The committee notes that while considerable reorganization within the Department has already taken place in anticipation of a national lheritage program, no legislation to establish such a program is pending before Congress nor has such legislation been transmitted by the administration. It is therefore very difficult for the committee to make recommendations regarding the potential budget impact of such a proposal in fiscal year 1979.
Nevertheless, the President's proposed budget for fiscal year 1979 would authorize '7901978,000 for the Heritage Conservation and Recreation Service. As discussed herein the committee recommends a $545,500,000 increase in budget authority for this program area, for a total of $1,336,478,000.
Land and Tater ( i oervat'on Fand
The Land and Water Conservation Fund is the major source of land acquisition funding for the four Federal land-managing agencies. The current estimated backlog for all authorized but unacquired areas for these agencies is $1.6 billion.
The committee notes that the administration has recommended a decreasee of $12.1 million for the Forest Service's share of the land and water conservation fund. At the same time, the Forest Service has an identified backlog of about 1,503,624 acres at an estimated cost of $960,625,500. The committee strongly recommen(Is an increase of $50 million for the Forest Service's land acquisition program. These moneys should be used to begin acquisitions at those sites where willing sellers have been identified.
While the authorization level of the land and water conservation fund has been increased substantially in recent years, the fund's relative purchasing power has not been greatly increased due to rapidly escalating land values aggravated by prolonged acquisition delays. Unless the funds which have been authorized by the Congress are appropriately, the growing backlog cannot be reduced
The administration has recommended that approximately $100 million of land and water conservation fund moneys be available for areas not yet authorized by Congress, but where enactment is anticipated in fiscal year 1979. This inclu(les $12.5 million for the Appalachian Trail land acquisition program. Subsequent to the submittal of the President's budget, the House of Representatives agreed to the Senate amendments to the Appalachian Trail measure, H.R. 8803, and sent it to the President. The measure contains an authorization of $30 million for fiscal year 1979. The committee is confident that the measure will be enacted and, therefore, recommends full appropriation for this program in fiscal year 1979.
The committee expects to complete action during the next year on several pending bills, including legislation to establish the JeanLafitte National Historic Park, the Chattahoochee River National Recreation






48

Area, the Lowell National Cultural Park, and the San Antonio Missions National Historic Park. Each of these measures anticipate expenditure of a significant amount of land and water conservation fund moneys, making full funding of this program even more important. Additionally, full funding of the land and water conservation fund means an increase in the moneys available to the States through the State grant program. The States have the capability to match additional Federal dollars and should be encouraged to acquire outdoor recreation resources as expeditiously as possible. Historic Preservation Fund
The authorized level of appropriations for the Historic Preservation Fund is $100 million in fiscal year 1979 and $150 million in fiscal years 1980 and 1981. These authorizations are intended to provide matching grants to the States for purposes of preserving our national heritage. The administration has requested $45 million for fiscal year 1979. The committee recommends an increase of $55 million, for a total of $100 million for fiscal year 1979.
The committee strongly urges that the Secretary of the Interior implement the 70/30 matching formula authorized by section 102(c) of the Historic Preservation Act of 1966, as amended. Likewise, the committee suggests that the Secretary revise the grant guidelines to (a) reward States that are aggressively carrying out the intent of the Congress to survey State historic properties and to acquire and develop such properties; (b) provide advance funding to States for approved programs; and, (c) assure that the Department of the Interior manage the grant program in a manner responsive to the intent of the act. The Secretary shall provide copies of the new guidelines to the respective committees within 60 days of the budget approval.
The committee believes that additional personnel are necessary to effectively implement the program and recommends the addition of 15 positions.
Preservation of Historic Properties
The committee recommends an increase of $500,000 to support an additional 20 personnel spaces for administration of Historic Properties. These additional technical personnel are needed to process nominations and maintain the National Register. .Abandoned Railroad Right-of-Ways
The program for the conservation and use of abandoned railroad right-of-ways for recreation purposes as authorized by the Railroad Revitalization and Regulatory Reform Act of 1976 is not within the committee's jurisdiction. However, the program is an exciting concept and is complimentary to the overall responsibility of the committee in insuring recreational opportunities for the public. The committee notes that although the prograi was authorized for a total of $20 million during fiscal years 1976, 1977, and 1978, only $5 million was appropriated. Inspite of this meager funding level, there has been an overwhelming response to the program by interested local and State governiments. Although the President's budget request for fiscal year 1979 does not contain funds for this program, the committee urges













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that serious consideration be given by the committee of jurisdiction to including funding in the amount of $15 million for this program in fiscal year 1979.
6. NATIONAL PARK SERVICE
Congress, by the act of August 25, 1916, created the National Park Service to provide for the cohesive administration of the National Park System. The primary objective of the Service is to protect, preserve, and operate the designated units of the National Park System so that they may be enjoyed by present and future generations of Americans. There are presently 294 units of the System which will be visited by an estimated 282 million people in fiscal year 1979.
Prior to a partial departmental reorganization by the Secretary of the Interior on January 30, the National Park Service had a second major objective which was to maintain and focus a national historic preservation program. The reorganization, accomplished by Secretarial Order No. 3017, created a new service-The Heritage Conservation and Recreation Service (HCRS). The new service, which succeeds the former Bureau of Outdoor Recreation (BOR) will assume responsibility for historic preservation through the transfer of the Office of Archeology and Historic Preservation, including the Historic Preservation Grants Program and the National Register of Historic Places, from the National Park Service.
In addition, partial responsibility for the completion of water resource, river, and trails studies has been shifted from the former Bureau of Outdoor Recreation to the National Park Service.
Aside from these changes, however, the National Park Service will continue to carry out its primary function of acquiring, developing and managing units of the National Park System as designated by the Congress. In this regard, it is anticipated that the committee will be working very closely with the National Park Service and the HCRS during the next few years to attempt to meet the recreation and open space needs of the urban dweller.
The President's proposed budget for fiscal year 1979 would authorize $504,586,000 for the National Park Service programs. As discussed herein the committee recommends a $192,000,000 increase in budget authority for this program area.
Construction
The administration is recommending $121,328,000 for the construction fund in fiscal year 1979, which is $40.1 million less than last year's request. In general terms, two types of construction activities are carried out under this category-(I) buildings, utilities and related facilities; and, (2) roads, trails, and parkways. The committee recommends an increase of $41 million over the administration's request for tiese two construction-related activities. The committee believes that adequiate annal expenditures for the stabilization and rehabilitation of Federal investments are necessary to prevent future costs resulting from neglect.
The committee recommends an additional $150 million in this category for the acquisition of additional lands to the existing Redwood National Park should legislation expadig the part be enacted this (Conigress. The Senate version of the legislation, which is currently







in conference, provides that acquisition monevs come from the general fund of the Treasury, while the House version of the bill specifies the Land and Water Conservation Fund as the funding source. As this construction category serves as the Park Service's non-LWCF funding source for land acquisition, the committee wants to insure that necessary moneys are available for Redwood acquisition from this source.
Operation of thle Nati*onal Park System
The Administration has recommended that the subfunction of New Area Studies, under Operation of the National Park System, receive $360,000 Zo carry out an ongoing assessment of potential additions to the National Park System. Section 8 of Public Law 94-458 directs the Secretary of the Interior to investigate potential additions to the National Park System and submit to the Congress at the beginning of each fiscal year a list of not less than 12 such areas. This request is based on the committee's need for professional advice and recommendations on possible additions to the System which both meet the established criteria and represent those national resources not already included in the System.
The first set of studies received this year pursuant to section 8 is inadequate. If the committee is to utilize these studies in the formulation of public policy, the information presented must be up-to-date and thorough. The inadequate funding in the past year is reflected in the studies transmitted to the Congress this year. Therefore, the committee recommends an increase of $1 million for the preparation of these important studies.

7. NATIONAL PETROLEUM RESERVE IN ALASKA
Jurisdiction over the National Petroleum Reserve in Alaska was transferred from the Secretary of the Navy to the Secretary of the Interior on June 1, 1977. Section 104 of Public Law 91-255 directs the Secretary of the Interior to conduct a, petroleum exploration of the Reserve. The U.S. Geological Survey has been charged with the responsibility for the exploratory activity.
The original exploratory program planned by the Navy called for the drilling of 26 wells by the end of fiscal year 1980. In Novembe 1977, USGS evaluated that exploration program and determined that a minimum acceptable sampling could be accomplished by the drilling of 20 to 21 wells, plus followup or confirmation wells which might be indicated as the result of the fiscal year 1978 and fiscal year 1979 (Irilling. The fiscal year 1979 budget proposes to reduce the original exploratory program of 26 wells to 19 wells and to terminate the exploration of the Reserve at the end of fiscal year 1979.
Exploration of the Reserve is a major undertaking which will require persistence and sustained effort. Created in 1923, as Naval Petroleum Reserve No. 4, the NPRA today contains over 23 million acres or about 37,000 square miles. Seismic and geophysical data have indicated the presence of approximately 125 I)1ospective structural oil traps which constitute v.alid exploration targets.
The committee believes that the Nation's need for petroleum resources mandates the continuation of the search for oil and gas in



















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NPRA. The Reserve is a potential energy treasure house aid the effort must be made to inventory its assets. In a repl)ort to ('ongress in August 1976, the FEA pointed out that a delay in the realization of the potential economic benefits from the NPRA would be very costly. Assuming an 8-percent discount rate and constant real (i.e., adjusted for inflation) world oil prices, FEA found( that a 1 year delay in realizing the net national benefits would cost the Nation about $312 million.
The committee has been informed by the Department that if significant discoveries or favorable indications are revealed by the 1978 and 1979 drilling, the exploration program for fiscal year 1980 would provide for followup or confirmation wells. Despite this assurance, the reduction of $30.5 million from the original USGS budget request of $211.9 million is a matter of concern. The $30.5 million reduction will preclude the purchase and transportation of oil field hardwar-e and(t fuel needed for the drilling of wells in fiscal year 1980. The long leadtimes involved in solving the logistical problems associated with drilling in the arctic require supplies to be procured and transported to that remote area a year before wells are to be drilled.
Because the committee believes that followup or confirmation wells in fiscal year 1980 will be indicated by the results of the 12 exploratory wells to be drilled in 1978 and 1979, the $30.5 million reduction in the fiscal year 1979 budget should be restored(l. Without the funding capability to acquire the drill pipe, casing, drilling mud, fuel, etc., during fiscal year 1979, it will be impossible to proceed with followup an(l confirmation wells in fiscal year 1980. Budget authority for the evaluation and assessment of NPRA in fiscal year 1979 should lbe $211.9 million instead of the requested $181.4 million (an increase of $30.5 million).
Section 104 of Public Law 94-258 requires that the Secretary of the Interior take such actions as ma\- be necessary to continue to supply natural gas to the Native village of Barrow and other communities and installations at or near Point Barrow, Alaska.
The program for exploration anl development of the Barrow area gas fields is proposed to be postponed by the fiscal year 1979 budget until agreement is reached with non-ederal agencies to fund and install a modern gas distribution system at Barrow. The fiscal year 1979 budget request is $13 million below the fiscal year 1978 appropriation for exploration and development of gas wells in the Barrow area and the propose( $1,771,000 will provide only for routine maintenance.
The South Barrow gas field currently supplies the natural gas utilized by the Native village of Barrow and the various Federal installations and agencies in that area. The committee is informed that there is a possible water encroachment problem which threatens the reliability of the existing wells in that field. One well produces 60 percent of the gas production amnd i' it were "to water-out" emergency measures would have to be taken to provide an alternate fuel to the municipal generating plant. USGS had planned to explore and develop adjoining gas structures in order to increase the margin of safety for gas supplies. The $37,723,000 requested for that programm, however, was reduced to $1,771,000 in the fiscal year 1979 budget request. The committee recommendation represents a $35,952,000 increase.
24-427-78----5






54

Postponing the exploration and development of new sources of natural gas appears to risk the population of a remote arctic community to potential danger. There is reason to believe that the Federal Government is legally responsible for providing a modern, safe gas distribution system in the Barrow area. The Bureau of Indian Affairs has requested a Solicitor's opinion on this question and if legal responsibility is acknowledged, the delay of gas field development pending negotiations with non-Federal agencies for the funding of a new distribution system becomes ludicrous. The fact remains that the statute requires the Secretary of the Interior to provide natural gas to the community, irrespective of the installation of a modern distribution system.
The committee is of the opinion that the exploration and development of new natural gas supplies in the Barrow area should not be delayed while efforts are made to convince non-Federal agencies to fund a new gas distribution system, especially in view of the question concerning the legal responsibility of BIA to provide it.
The program for exploration and development of the Barrow area gas fields should be increased by $35.952 million from the requested $1,771,000 to $37,723,000.
In summary, the President's proposed budget for fiscal year 1979 would authorize $186 million for activities of the Department of the Interior concerning the National Petroleum Reserve in Alaska. The committee recommends a $66,452,000 increase in this program area.

8. OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT
On August 3, 1977, the President signed into law Public Law 95-87, the Federal Surface Mining Control and Reclamation Act. Under its terms a new Office of Surface Mining Reclamation and Enforcement (OSMRE) was initiated within the Department of the Interior, to implement the law by regulating surface impacts of coal mining.
Altholigh congress s had authorized( $67.5 million for fiscal year 1978 for the new Office, the appropriation was delayed until the recent enactment of the Supplemental Appropriations Act, H.R. 9375. ('onsequently, severe limitations have been placed upon the Departmnent's ability to fill some 800 new positions in the Office and take other steps necessary to meet the enforcement and application (ldeadlines in ti he act.
The fiscal year 1979 budget proposed(l by the Office reflects the iuncertainties inherent in this unfortunate situation. Since a major objective of the Office during fiscal year 1978 and fiscal year 1979 is to encourage and provide assistance to the States for their development of permanent regulatory an(l reclamation programs, the question of how many of the 26 coal-producing States would likely submit programs inm tine to be reviewed and approved by the Office (luring fiscal 1979 is very much to the fore.
Seven States are considered by the Office as likely to submit permanent regulatory and reclamatioii programs in time for review and approval in fiscal year 1979. Assuming full State participation, fiscal year 1979 is expected to be the peak workload period for the Federal interim )rogramn inspection, which is required by law to back up





515

the State enforcement. The budget requests for fiscal N-eaj, 1 7 therefore indicate what the projected workloads for both State and Federal enforcement will require.
,rhe committee thus suj)j)orts tile Presidelit's I)rOlmsed 1)11(hret of $108,620,000 for tile office of \,Illllll(r Rechimation wid E411forc-ement, with the zidditloji of' $8,500,000 for file e.,4ablislijilellt (4 mineral institute,, oil 0 1)('rill.111'eilt
111vei-al
A matter of 111tere'.4 to tile com nilt t ev Is the 11111ler"ll 111stitilk"'s budget request for fiscal year 19"79; $5.7 millioti i,, aj)I)roI')riated ili fiscal vear 1978 for these I listitutes, fornial1v ktiowii as State Mit)1110' tuid 'M itieral Resources tuid Research Institutes aild establi"Illed utider l)rovi1.zioiis of title III of the ac.t. '_Nothiii(v at -till is biid(reted for the miiieral IDStitUteS ill fiscal year 19719.
It Is difficult for the conlillittee to coml)reheii(l how the ii(,wl-%-created iiiiiieral flistitutes caii be exj)ected to carry mit their illissioll of traiiiiiig and research without cmitinued fmiding. rherefore, to insure adequiite fmidilig of the mineral institutes j)rogram on all onooiiig basis, the committee recommends all ii-lerease ill fii;c 111 velar 1979 to $8.5 inilhoit, with the miderstlaiidligr that the Del),artineiit of the Iiiterior mid the Office of Surface Nihiiiiia Recl zi ill at loll aild Enforcenimit will take all actimis reqtilred t),v title 111 to fullY lilliAell-will C011gressimull 111tvilt as to the ("stablishille'llt of 1111lieral ill'-4itilte" oil a, 1)ermaiient basis.
Small Operators
T'be committee is also conceriled about the treatment of small operators under the act. Durin(-r the interim I)eriod. the (Ace will be required by law to 8 ;,- ist ,mall olvrators (those in-oducill(r 110 1,1101'e, than 100,000 tons of covt "inall till V) bv fill 1-111( -in(r the costs of qualified laboratories in makin,(r a, (leternIinatloll of the 1)roba.ble hYdrolo(ri(l consequences of millill'(2, and reel, nation o1wrations. The assi ,., ( It ( I instance,
wh;ch will be financed throtigh the abandoned imite rechaination fund', will also cover I)i-elmration of ,t sttiteilient, oli. tile chemicid and physical analyses of core -,aml)les taken from existimr or I)rol)osed mine sites.
The colilinittee exj)vct.-; to itionitor the I)rogress of the sillall oj)('r(qtors assistance pro(rram close]\-. It is- aj)parent that tlio, tanniial ceiling cf $10 million is overIv restrictive. Legislation t o illcreal-Ile the allowable amount for the I)ro(rrani ha.s been introduced and will be considered forthwith bY the committee.

9. PENN'S YLVA NIA AVENUE DEVELOPMENT CORPORATION
The Peiii-Isylvaiiia Aveime Develolmieiit (_"orj)ol*11It loll (PADC) w. is established ,I,- a WholIv ONviled itistrumeiitall t-\7 of tll( Utilted States hv act of Cmigres-;, October 27, 1972 (Pubfic Law 92-157S). 'File directed the ("ol-poratioll to I)r(II)are ;111d 11111)]eIllelit (-I reliability "it 1011 4111d develol)IIIelit for Pelms vlvailli Aveime. '-;Mcv Nhiv of 1915i wheil the plaii was aj)l)roved b\ the Comrre ,, tlie PADC lizis bee,,i impleilienting this developmeidjAzaii.
The con-II)letloit of this I)Iaii is eXI)ected betweell 19S9 alld 1991. Diii-Mg fisc(-il year 19797 tile PADC will collt'llile 01- oil





56

those activities west of the J. Edgar Hoover Building, including the Willard Hotel and the National Press Building. The emphasis in the next 5 years will shift from the west to the east side of the J. Edgar Hoover Building. Activities in the area will include multipleuse development sites (commercial and residential) and historic preservation.
The President's proposed budget for fiscal year 1979 would authorize S;27,235,000 for the Pennsylvania Avenue Development Corporation. The committee recommends a $7,215,000 increase in budget authority for this program area. This includes an additional $470,000 for salaries and expenses, $4,100,000 in borrowing authority for land acquisition and development, and $2,645,000 for public development. These increases reflect both what the committee reported and what the Senate passed in 1975 in the way of authorization. The authorization level was reduced by the House prior to final enactment in 1976.
The PADC is operating under the 1972 enabling act, as amended in 1976. Authorizations for salaries and expenses and public development expire at the end of fiscal -ear 1978. Borrowing authority for land acquisition and development expires at the end of fiscal year 1980. The committee expects to increase and extend these authorizations for fiscal year 1979 and beyond (see "Legislative Action Items").

10. TERRITORIES
lThe committee's jurisdiction extends from the acquisition of a territory Iup) to and including resolution of its ultimate status (statehood or independence). Jurisdiction over Hawaii and Alaska ceased under the territorial clause with the enactment of the Hawaii and Alaska Statehood Acts and for the Philippines upon independence. The committee's an(d the Congress exercise of the territorial clause with respect to the contiguous United States ended with Arizona's statehood.
The Congress andi thIe (o01111ittee exercise identical authority over the Trust T'erritory of the Pacific Islands although the United States does not exercise sovereignty over that area. The more limited responsibilities and authorities of the United States in Antarctica also fall in this category.
The cotnuitt(ee's jurisdiction extends to all aspects of incorporation and organization of these areas including, but not limited to, citizenship and/or natural status of the inhabitants; extension of Federal legislation including provisions of the U.S. ('onstitution; all matters of local governance:; athorizations for civil governance including pi)ublic works, edu Ication, transportation, and medical care; and ultimate disposition by statehood or in(depe)dence.
The major insular areas over which the committee has jurisdiction incll(e American Samoa, Guam, Puerto Rico, the Virgin Islands, and the Trust Territorv of the Pacific Islands includingg the Northern Ma rlna Islands which will becornte a coninlonwealth on the toerminai on of the ilstoeslliI) agremen)il.)
A )lroval 1of l( covenant, w ich )roVides for he Co( timionwealth of the Northern Narianas, was the first step in the United States fulfill inelt of its obligation inder a 1947 truisteesllip) agreement with Sthe (nil IN1atins. ''l t ce(,lnanlt )rovides for the (ration of a











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Commonwealth of the Northern Marianas under U.S. sovereignty; local self-government including adoption of a local constitution by the residents of the Northern Mariana Islands; granting of citizenship ori national status to the residents of the Commonwealth; and the extension of the provisions of the U.S. Constitution, treaties, and statutes, with some limitations to the Commonwealth.
The total jurisdiction of the committee and the Congress encom)asses more than 2,000 islands and possessions including the areas previously cited as well as other possessions such as the Guano Islands; Palmyra: Hcwland, Baker, and Jarvis Islands; Canton and Enderbury Islands; Johnston and Sand Islands; Kingman reef; Midway: Harvassa;: certain of the Line Islands; Caroline Atoll, Christmas Island; certain of the Ellice Islands: Funafuti Atoll, Nukufetan Atoll. Nukulailai Atoll, and Nuraketa; certain of the Phoenix Islands; Bernie Atoll, Gardner Atoll, Hull Atoll, Mckean Atoll, Sydney Atoll and Phoenix Atoll; certain of the Tokelau Islands, Atafu, Fafaofu, and Nukunon; and certain of the Northern Cook Islands; Danger, Manahiki, Rakahanga, and Penrhyn.
The Office of Territorial Affairs in the Department of the Interior has primary responsibility for most specific federal programs. The Department of Defense exercises some specific program responsibilities in Guam, the Trust Territory, and in logistical support for United States activities in Antarctica which are organized principally through the National Science Foundation. Programs of general applicability to both States and territories are almost exclusively administered by the agency with the overall program responsibility.
The committee's analysis is therefore broken out by territory and summarized within general program function and subfunction codes.
'The President's fiscal year 1979 budget request for administration of the territorial responsibilities of the United States proposes a budget authority of $157.5 million with a budget outlay of $143.9 million. The committee recommends increases of $205 million and $145 million respectively. Committee recommendations by program are as follows:
Guam rehabilitation
The President's budget submission requests $500,000 in budget ni thority and outlays pursuant to Public Law 90-601, the Guam Development Fund Act of 1968. The obligation of the $500,000 would exhaust the total authorization under Public Law 90-601. The committee has indicated an increase of $1 million in budget authorit, for the Guam economic development loan fund from the authorization contained in Public Law 95-134. Actual outlays for fiscal year 1979 cannot be estimated until the formal requests from the government of Guam are sent to the Secretary of the Interior, but the Committee believes that the budget authority should be provided to cover whatever needs may arise. GwarIn (onstructton
The committee has recommended budgetary authority of $15 million with outlays of $8 million for fiscal year 1979 pursuant to section 201(a) of Public Law 95-134. The committee notes that there iso possibility that the adtmiinistration may request the $15 million in )1udietar.i authority as a. fiscal Year 1978 s11upplemental. The com-








nuttee would support this action, but has included the $15 inillioll in fiscal year 1979 due to the uncertainty of Appropriatlons (Commlittee action on a supplemental. The $15 million authorized by section 201 (a) of Public Law 95-143 would assist in typhoon rehabilitation, upgrading and construction of public facilities, and maintenance of essential services.
G .arm Health Care
The President's budget request does not contain funds for Guam Health Care. The coimnnittee recommends a level of $8)5 million in budgetary authority and outlays for fiscal year 1979 for a grant to Guam for health care assistance. The committee understands that it is possible that a request may be made for authority in an fiscal year 197 supplemental and would support such a request. Section 205 of Public Law 95-134 authorized $25 million for such a grant. The $25 million represented the best estimate of the costs of purchase of the 'Medical Center of the Marianas by the Government of Guam to provide acute care treatment in lieu of rehabilitating the Guam Memorial Hospital which was severely damaged by a typhoon. The additional $10 million included in the committee's fiscal year 1979 recommendation is to cover the additional costs incurred by a delay until fiscal year 1979 in making these funds available.
American Sainoa
For fiscal year 1979, the President's budget re(fuest contained
$19.9 million in budget authority for American Samoa. The committee recommends an increase of $3 million in budgetary authority.
The increase is principally to provide for an economic (levelopient loan fund to encourage the development of small business, eonstruction, and other skills necessary to minimize the present heavv importation of alien labor into Samoa. The committee notes thAt the decrease in budgetary authority recommended by the President is principally in construction and capital improvement projects. It may be necessary to increase these levels and the $3 million recommended increase should be sufficient to cover aly need, deferring reaching the full $3 million economic development fund level until fiscal year 1980. No new authorization is needed for the $3 million increase for either construction or for a loan fund. Sufficient authority exists under 48 U.S.C. 1661; 46 Stat. 4 (Ex. Ord. No. 10264, June 29, 1951, 16 F.R. 6419).
Virgin Islards Tax Loss
The President's budget request does not contain funds for this item. The committee recommends a level of $14 million in budgetary authority and outlays for fiscal year 1979 to exhaust the authorization contained in section 402 of Public Law 95-134 to reimburse the government of the Virgin Islands for revenue losses occassioned by the Tax Reform Act and the Tax Reduction Act. The Virgin Islands, 1)v federal law, must use the federal internal revenue laws as a local territorial tax. The Congress failed to consider the impact on an otherwise balanced budget of major tax reductions in 1975 and 1976. The committee understands that the Virgin Islands has requested that the funds be made available in an fiscal year 1978 supplemental and the Committee would support such a request. The committee has in-






60

cluded the $14 million in fiscal year 1979 due to the uncertainty of Appropriations Committee's actions and the lack of response to late from the Office of Management and Budget on the request from the Virgin Islands for a supplemental request from the administration. Virgin Islands IReen ue Shortfall
The President's fiscal year 1979 budget request does not contain funds for this item. The committee recommends $30 million in new budgetary authority as a precaution against a budget deficit in the Virgin Islands. In the past, the Virgin Islands has, as requested by Federal law, maintained a balanced budget or a surplus. Recently, however, changes in the Federal internal revenue laws which are mirrored in the Virgin Islands have been compounded by the effects of mainland recession on the Virgin Islands economy to create a potential deficit. If in fact the Virgin Islands does not derive sufficient revenues, it will be necessary for either the Federal Government to provide a grant or for the Virgin Islands to curtail services such as education, or health programs. The committee notes that it is possible that a resolution of the petroleum product excise question may either eliminate this problem or require legislation to reimburse the Virgin Islands for revenues mistakenly withheld in prior years. Virgin Islands Hospital
The President's fiscal year 1979 budget request does not contain funds for this item. The committee recommends new budgetary authority of $52 million with outlays of $15 million for fiscal year 1979 for hospital construction in the Virgin Islands. The committee anticipates that completion of health needs studies will result in a request for authority to construct hospital facilities on St. Thomas and St. Croix with a smaller facility on St. Johns. No authorization exists at the present time pending study review and recommendation by the Governor.
comptroller's s Office
The President's aggregate fiscal year 1979 budget authority request for the Comptroller's Office is $2.7 million. The committee recommends an increase of $500,000 or $100,000 for each of Guam, the Trust Territory and Northern Marianas, American Samoa, and the Virgin Islands, in order to permit the respective Comptroller's offices to offer technical assistance to the territorial governments. This assistance is needed if the territorial governments are to implement the various recommendat ions for improvement cited by the Comptroller's offices, the Office of Territorial Affairs, and(l this committee. Office of Territorial Affair.s
The President has requested $1.03 million in budget authority for the Office of Territorial Affairs. The committee recommends an additional $100,000 to cover the costs of technical assistance needed by the territories. The committee notes that the Administration recomminendation includes the increase of personnel by seven permanent positions within the present ceiling, and supports that action. Northern ar;ana Island-s
The President's fiscal year 1979 budget request includes $18 million in budget authority for the Northern Mariana Islands. The committee





61

recommends an increase in budgetary authority of $1 million to cover present uncertainty over the indexing formula included in the Commonwealth Covenant. The Administration levels reflect its judgment as to the period of indexing calculations while the committee recommendation reflects appropriate levels should the Administration be in error. The committee recommendation does not reflect nor imply any judgment as to the proper date for indexing but is designed only to guarantee sufficient flexibility in budget resolutions should the Administration be in error.
In addition, the committee recommends $290,000 in budgetary authority with $180,000 in outlays for fiscal year 1979 to fund the joint Commission on the Review of the Applicability for Federal Laws to the Northern Mariana Islands for which the President had not requested funds. The Commission was authorized by the Covenant to establish a Commonwealth of the Northern Mariana Islands, section 504, Public Law 94-241. The committee anticipates that the Commission will take approximately 18 months to complete its work with fiscal year 1980 outlays of approximately $110,000. Territories
The President's fiscal year 1979 budget request for the Trust Territory is $106.92 million. The committee recommends an increase of $43 million. Of the President's request, approximately $51.7 million is for capital improvements, an increase of $17.688 million over fiscal year 1979. The increase, however, is still $18.6 million short of the amount needed to maintain the capital improvement program as designed by the Navy Officer in Charge of Construction and approved by the Congress of Micronesia and the Administration and as authorized by the Congress in Public Law 95-143 section 101(a). Tle increase recommended by the Administration is somewhat specious in that it represents only a return to program levels and does not include the projects deferred due to the decreases requested in fiscal year 1978. Adoption of the Administration's recommendation will result in
(1) significantly higher costs when projects are initiated in future years due to the deferral, (a) permanent deferral of the projects which would result in failure of the United States to have a basic infrastructure in place by the termination of the Trusteeship anticipated in 1981, or (3) a return to piecemeal, multi-stage contracts criticized by this committee the Congress of Micronesia and the Administration prior to the development of the 5-year program to be administered by the Navy OICC.
The committee, accordingly, recommends the following projects be re-included in the fiscal year 1979 levels.
Millions
Marshals (docks)-$969,000 Ponape (roads)-3,610,000 Yap (roads)-2,839,000 Truk (roads)-3,573,000 Marshalls (water)-839,000 Truk (water)-3,573,000 Yap (power----1,221,000 Marshalls (power)-1,142,000 Truk (sewer)-834,000
Total_ -18,600,000
24-427-78--6






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In addition the committee recommends $10 million to fund arot construction in Ponape and Truk. This $10 million will not derive from the general authorization level of $122,700,000 for fiscal year 1979 included in section 101(a) of Public Law 95-143 but from the authorizations to cover any decrease in Federal grant-in-aid programs as these airports would have been funded by FAA but for the reduction in FAA fund availability.
The committee also includes approximately $10 million in budgetary authority with $8 million in outlays for construction programs at Ebeye Island on the Kwajelein Atoll, Marshalls District. The committee notes that the reauthorization of authorized but unappropriated sums contained in section 101(a) of Public Law 95-143 would be sufficient to cover this increase without affecting the specific program level included for fiscal year 1979. The situation at Ebeye has been of great concern to the committee for several years and the committee anticipates administration support for this level.
The committee notes that the $10 million recommended increase for airports at Ponape and Truk may be transmitted as an fiscal year 1978 supplemental request, and the committee would support such a request. The committee included the $10 million in fiscal year 1979, however, due to the uncertainty of clearance from 0MB for an fiscal year 1978 supplemental request and the uncertainty of action on such a request by the Appropriations Committees. Eniwe talc Rehabilitation
The President's budget request for fiscal year 1979 does not request budget authority but does project a budget outlay of $5.4 million for this-program. The committee supports the administration's estimate on outlays but recommends an additional $1.5 million in budgetary authority and outlays pursuant to section 103 of Public Law 95-143. That section contains a construction inflation formula and the committee believes it will probably be necessary to complete the rehabilitation to enable the Enewetakese to return to their atoll. Ron gelap- Utiric Compensation
The President did not request budgetary authority for fiscal year 1979 for compensation of inhabitants of Rongelap and Utirik who were exposed to radioactive fallout during the Bikini tests. Based on the hearing record on Public Law 95-143 and the material submitted to the committee, the committee recommends budgetary authority and probable outlays of $200,000 to 'Cover five new cases in fiscal year 1979.
Ron gelap- Utiric-Bici'ni Community Projects
Section 104(b) of Public Law 95-143 authorized $100,000 each to the communities of Rongelap, Utirik, and Bikini for construction and repair of community facilities. The President's budget request for fiscal year 1979 does not contain funds for this program. The funds are unquestionably needed and accordingly the committee recommends them in fiscal year 1979.
War Claims
Section 105 of Public Law 95-134 authorized the payment of an additional $12.4 million under title 11 of Public Law 92-39, the Micronesian Claims Act of 1971 and approximately $23.6 million under






63

title I of that act if the Japanese Government contributes not less than 50 percent. Payment of the claims is conditioned on a finding by the Secretary that no unauthorized interest was included in the awards. The President's budget request for fiscal year 1979 does not request funds for this program; however, the committee believes that in the interests of justice and equity mandate the inclusion of $12.4 million in case the Secretary should determine that some or all of these moneys are due claimants.
Gitam-Munitions Pier
The President's budget request for fiscal year 1979 for military construction by the Navy Department does not include funds for relocation of the munitions pier on Guam. Oricrinal plans had called for relocation of the facility from the present harbor area where there is dancer to persons and property to Cella Bay. The proposal was subsequently revised to relocate the facility to Erodi Beach. The committee recommends inclusion of $43 million in budget authority and $30 million in budget outlay for fiscal year 1979 in order to relocate the pier.
11. U.S. GEOLOGICAL SURVEY
For fiscal year 1978, the Congress appropriated $362 million for the programs of the U.S. Geological Survey to undertake surveys, investigations, and research covering topography. geology, and the mineral and water resources of the United States and other areas authorized by law. The President's request for fiscal year 1979 is $398 million, an increase of $36 million which allows for maintenance of the existing program at current levels in constant dollars. Both amounts do not reflect funds appropriated or requested for exploration of the National Petroleum Reserve in Alaska which is considered separately in this report. As discussed herein, the committee recommends an increase of $3,100,000 in the noted programs of the U.S. Geological Survey.
Mineral In rmation, Systerns
The committee is concerned that the President's budget request does not reflect the need for increased activity in the U.S. Geological Survey's program for mineral information systems and resource analysis which is shared with the Bureau of -\lines. Information storage within the Computerized Resources Information Bank
(CRIB) system of the U.S. Geological Survey provides the general mineral resource data upon which much of the mineral reserves information contained in the Bureau's \lineral Availability System (.M.,AS) is based.
The committee believes that the CRIB-MAS program has failed to live up to its potential. According to a GAO study, both systems suffer from a basic lack of administration recognition in their importance and usefulness. The committee believes that the U.S. Geological Survey and the Bureau should coordinate the programs so as to assure ready access to data for the general public and -for departmental decisionmakers.
Therefore, the committee recommends an increase of $450,000 and eight positions for the U.S. Geological Survey functions associated with the mineral information system and resources analysis budget for CRIB-XIAS coordination.





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Law of the Sea Conference'
,Ocean, inin legislation supported by the adminitaini o
pending in the Senate and in the opinion of the committee is'likely to be enacted by Congress in this session. With the renewal of negotiations of the United Nations Law of the Sea Conference in 'Geneva, it is important that the Department of the Interior be prepared to assume regulatory responsibility in the near future. Interpreted data could and should be collected and used by the Department in the formulation of regulations for mining in the deep oceans..
Assumingr the enactment of appropriate legislation, ocean mnn
is imminent. Industry spokesmen expect production of manganese, nickel, copper and cobalt from manganese nodules located in one or two high grade areas by 1985. Presently within the Geological Survey there are marine research projects which can serve as the nucleus of a Federal manganese nodule program. Seed projects on processes of seafloor mineral formation, chemical analysis of nodules, deep seabed mapping and worldwide manganese resources surveys are among the existing programs.
Under the ocean mineral policy established by the Secretary, the Geological Survey and Bureau of Mines would undertake the following additional programs:
-resource assessment to define, locate and evaluate the magnitude of manganese nodule resources;
-compilation and evaluation of available data;
-surveying, sampling, and mapping of potential mine-site areas
to establish criteria required to define a deep sea mine. Data are required to delineate acceptable mine-site dimensions-, consideringr the erratic nodule distribution, size and concentration, variations in metal concentrations and topographic
features that may pose hazards to mining equipment.
The committee recommends an additional $2,650,000 be appropriated for fiscal year 1979 and 14 positions be established to fund these programs to undertake preparatory work in anticipation of passage of related legislation.

12. SUMMARY
For the programs of the Department of the Interior, the President's proposed budget for fiscal year 1979 is summarized in the following table, along with the recommendations of the Committee on Energy and Natural Resources.








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DEPARTMENT OF THE INTERIOR

President's
request, Committee Committee
fiscal year recommenda- increase
1979 tion, 1979 (decrease)

Advisory Council on Historic Preservation:
Budget authority ---------------------------------------------- 1,553 2,000 447
Budget outlays ------------------------------------------------ 1,481 1,881 400
Bureau of Land Management:
Budget authority ---------------------------------------------- 485,925 576,791 90,867
Budget outlays ------------------------------------------------ 483,780 564,052 80,272
Bureau of Mines:
Budget authority ---------------------------------------------- 121,329 123,229 1,900
Budget outlays ------------------------------------------------ 127,975 128,975 1,000
Bureau of Reclamation:
Budget authority ---------------------------------------------- 622,400 733,400 111,000
Budget outlays ------------------------------------------------ 604,540 704,540 100,000
Heritage Conservation and Recreation Service:
Budget authority ---------------------------------------------- 790,987 1,336,478 545,500
Budget outlays ------------------------------------------------ 614,852 1,145,352 530,500
National Park Service:
Budget authority ---------------------------------------------- 504,586 696,586 192,000
Budget outlays ------------------------------------------------ 484,891 634,891 150,000
National Petroleum Reserve in Alaska:
Budget authority ---------------------------------------------- 186,000 252,452 66,452
Budget outlays ------------------------------------------------ 187,150 237,150 50,000
Office of Surface Mining Reclamation and Enforcement:
Budget authority ---------------------------------------------- 108,620 117,120 8,500
Budget outlays ------------------------------------------------ 69,870 75,870 6,000
Pennsylvania Avenue Development Corporation:
Budget authority ---------------------------------------------- 27,235 34,450 7,215
Budget outlays ------------------------------------------------ 34,085 39,085 5,000
Territories:
Budget authority ---------------------------------------------- 157,500 362,500 205,000
Budget outlays ------------------------------------------------ 143,900 288,900 145,000
U.S. Geological Survey:
Budget authority ---------------------------------------------- 398,363 401,463 3,100
Budget outlays ------------------------------------------------ 393,838 395,838 2,000












C. DEPARTMENT AGRICULTURE
1. U.S. FOREST SERVICE
Unique among Federal land management agencies, the Forest Service is required by law to periodically provide the Congress with a specific long range program setting forth proposed land management goals for each of the renewable resources and the financial requirements to meet those goals. The first such program, submitted pursuant to the Forest and Rangeland Renewable Resources Planning Act of 1974 (RPA), covered the period from 1977 to 2020. In addition, a number of specific land management goals were established by the Congress in the National Forest Management Act of 1976 (NFI\,TA). The proposed fiscal year 1978 budget of Presidents Ford and Carter of $1,011,741,000 for the Forest Service failed to accommodate either the funding authorizations in, and requirements of, the NFMA or the projected RPA's program goals for fiscal year 1978.
The Appropriations Committees made significant additions to the proposed fiscal year 1978 budget with the goal of reaching 85 percent of RPA goals. The final fiscal year 1978 appropriation of $1,476,860,000 met 84.5 percent of RPA goals.
The Committee is disturbed that the President's fiscal year 1979 proposal of $1,574,420,000 recedes further from the RPA goals. This year the proposed budget includes all the funds for "forest fire, protection" and "fighting forest fires" which in the past, have been submitted for supplemental appropriations. When the $152,399,000 total increase over fiscal year 1978 in the two-forest fire protection and fighting forest fires-budget items is deleted, the President's proposal is reduced to $1,422,021,000 or $54,839,000 less than the appropriation level of fiscal year 1978. The President's fiscal year 1979 proposal would meet only 71.6 percent of RPA goals.
The committee firmly believes that the target for fiscal year 1979 should once again be 85 percent of RPA goals. However, as the Committee does not comment on all Forest Service programs, the increase it proposes will not permit the agency to reach the 85 percent goal for the entire range of its activities. This will depend on the recommendations made for the other budget items by the Committee on Agriculture, Nutrition, and Forestry.
The committee recommends an increase in the Forest Service fiscal year 1979 budget of $155,273,000.
Forest Protection and Utilization; Forest Land Managernent
The most critical budgetary needs of the Forest Service axe found in the Forest Protection and Utilization appropriation. Congress placed heavy emphasis on this category with the passage of the NFMA. The committee (by virtue of its creneral jurisdiction and its specific joint responsibility I for the NFT X with the Agriculture, Nutrution, and Forestry Committee) is particularly concerned with the Forest
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Land Management subcategory. The committee expects the other subcategories-Forest Research and State and Private Forestry Cooperation-to be addressed by the Agriculture Committee. The Committee recommends a $122,273,000 increase in the President's proposed fiscal year 1979 budget of $689,624,000 for the Forest Land Management appropriation.
National Forest Protection and Management
This $600,773,000 subactivity is the largest in the Forest Service's fiscal year 1979 budget, but, when the reduction is made for inclusion of the additional "forest fire protection" funds normally absent from the agency's fiscal year budget requests and submitted only for supplemental appropriations, the President's net proposal of $508,4.34,000 is $12,753,000 less than the fiscal year 1978 appropriation level. The President's proposal for this subactivitv would meet S1 percent of RPA goals; only three items (sales administration and management, 85 percent; forest fire protection, 100 percent; and, general land management activities, 81 percent) approach or exceed the 85 percent of IRPA goals target. The Committee recommends the addition of $122,215,000 to the President's fiscal year 1979 budget request for this subactivity.
Sales Preparation..-The Administration proposes to meet the increased need for National Forest timber in fiscal year 1978 by offering for sale 12.2 billion board feet. This offering would be achieved by several "one shot" actions, including (a) adding the carryover volume from fiscal year 1977, (b) exhausting the remaining viable "on-theshelf" timber and (c) including the mortality timber to be recovered through salvage sale fund procedures. In 1979 the sale offering would be reduced to 11.5 billion board feet. The committee objects to this proposed reduction in sale offering and recommends a budget increase of $10,000,000 and 450 man years of effort to elevate the 1979 goal to that which will be achieved in 1978.
Reforestation and Stand Improzements.-This particular program has been a focus of Congressional attention culminating in specific provisions in both the RPA and NFMA which address both the serious backlog, and current work, in reforestation. A total of $66,475,000 is requested in fiscal year 1979 for this item. This is only $1,248,000 more than was requested in fiscal yeair 1978 and is $8,914,000 less than the fiscal year 1978 appropriation level. It would reduce the acreage reforested from 206,000 to 151,000, n h ceg n wihtme stand improvement work is (lone from 287,000 to 169,000, fr'om fiscal year 1978 to fiscal year 1979. This request would provide only 50 percent of RPA reforestation and timber stand improvement goals. Thi~ funds specifically allocated for reforestation are only 18 percent of the fiscal year 1979 $200,000,000 authorizati( n foir that purpose in section 4 of the NEMA.
The committee is deeply concerned about the failure of the Administration to support a reforestation program which has been afforded such a high priority by the Congress. The committee recommends a $48,888,000 increase over the President's fiscal year 1979 request, divided as follows: $14,863,000 for reforestation (covering 247,000 acres instead of 151,000); $26,934,000 for timber stand improvement affecting (370,000 acres instead of 169,000), and $7,091,000 for genetic






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tree improvement. This increase will allow the Forest Service to continue on the fourth year of its 10-year reforestation schedule prepared pursuant to the direction of the Appropriation Committees in 1975. These additions also will provide the agency Twith the increased capacity in future fiscal years to meet the goal of elimination of the reforestation backlog by 1985 set forth in. section 4 of the NFMA.
Recreation Use.-The budget proposal for recreation is $88,277,000, (down $813,000 from the fiscal year 1978 appropriation level. This request would meet only 72 percent of the RPA 1979 goals. This figure may not even meet the recreation portion of the multiple use land management planning required by the NFMA and the funding needed to conduct several specific wilderness and national recreation area planning exercises required by individual statutes. The Committee recommends an increase over the budget request of $17,370,000 for this item. This would permit the agency to accommodate 3 million more visitor days for a total 316 million such (lays. The increase would be divided as follows: $1,250,000 in administration of concessions and recreation permits; $7,855,000 in operations and maintenance; $4,559,000 in planning and inventories; $1,358,000 in wilderness administration; and $2,348,000 in the Visitor Information Service.
Wildlife and Fish Habitat Management.-The proposed $25,276,000 budget for wildlife and fish habitat management is seriously inadequate It is a reduction of $2,576,000 from the fiscal year 1978 appropriation level (down from 1,124,000 to 925,000 the acre equivalents covered by habitat restoration and development work) and would meet only 54 percent of the RPA goals.
Failure to properly fund wildlife and fish habitat management activities is particularly unfortunate because, under the Sikes Act, much of the planning has already been accomplished and, thus, the funds could be applied to actual "dirt-work" instead of "papershuffling." Furthermore personnel ceilings are not a significant constraint in comparison to other program activities because much of the habitat improvement work under the Sikes Act cooperative agreements is conducted by the States or under contract.
Accordingly, the committee recommends an increase of $15,161,000 in this budget item, divided as follows: $14,365,000 in habitat restoration and development (increasing the coverage from 925,000 acre equivalents to 2,054,000 acre equivalents); $466,000 in endangered and threatened species habitat protection (increasing the acre equivalents from 32,000 to 34,000); and $330,000 in coordination and cooperation.
Rarngeland Managerment.-The rangeland management item is the most deficient budget item in the Forest Protection and Utilization category andl, perhaps, the most deficient budget item in the agency'.-entire fiscal year 1979 budget from the standpoint of committee priorities. The committee has made its position clear on the nee(1 for the placing of heavy emphasis on rangeland management, rehabilitation, and improvement work. Yet, the President's request of $24,914,000 for rangrelanid management is reduced by $6,321,000 from the fiscal year 197S appropriation level and would meet only 45 percent of the RPA goal. The 1.978 Budget Explanatoryr Notes of the Forest Service contain the comment that the proposed increase in the fee for grazing livestock on national forest landI will adld $1,174,000 to the Rangelands






69

Improvement Account and partially offset the decrease in the rangeland maaeetitem. Asthe House has alreadyv passed n h
committee will soon take uip H.R. 9757, a bill to impose a moratorium on the grazing fee increase, these additional funds will not likely be forthcoming. (See Legislative Action item 6.)
The committee recommends an increase of $1.3,618,000 in the range mangement item over the President's fiscal year 1979 request. $1,174,000 of this increase will substitute for the $1,174,000 expected in the Range Improvement account but which will be denied to the agency upon passage of the grazing moratorium bill. The remaining $12,444.000 will be used to increase the Animal Unit Months from 7,900,000 expected under the fiscal year 1979 request to 8,100,000 and to decrease the backlog of dIepletedl rang-e rehabilitation work by 410,000 acres instead of 396,000 acres as Contemp~lated in the fiscal year 1979 request.
So1il and I17ater 3ilanageinen.-There is a serious backlog of watershed restoration work on the national forests. MNany areas require the application of treatment measures involving large capital investments to restore soil and site productivity or to protect water quality. Other areas, because of their' naturally low herbagre productivity potential, will gra dually be removed from grazing allotments as range improvemnent practices increase the livestock carrying capacity of more produciveareas. A major portion of the soil stabilityprbesothe
areas can. be corrected over time through management practices if sufficient funding is available. The western drought has highlighted the need for such funding.
Unfortunately, the $34,229,000 fiscal 'year 1979 request for soil and water management will1 not provide this fundin g. The request is identical to the fiscal year 1978 appropriation level, but, whereas this funding was 88 percent of RPA goals in fiscal year 1978, it would be only 59 percent in fiscal year 1979.
The committee recommends an increase of $14,171,000, divided as follows: $2,223,000 for inventories ("Soil and Wateir Science for .Management Support", covering 38,000,000 acres instead of the 33,600,000 acres contemplated in the fiscal year 1979 request); and $11 ,94S ,000 for improvements ("Soil and Water Resource Improvement", affecting 97,000 acres instead of 73,000). These increases will permit the agency to meet NFMA multiple-use land management planning requirements and help accomplish initial watershed treatment on additional acreage which requires early attention in order to p~revenit further rapid deterioration and avoid a much higher ultimate restoration cost.t!
Mineral Areas Managernen.-The $11,319,000 fiscal year 1979 request for mineral areas management is down, $180,000 fr om the fiscal year 1978 appropriation level. The request would meet 71 percent of RPA goals. The committee recommends an increase of $3,007,000 to permit the agency to reduce the backlog of mineral cases (2,000) cases, 40,000 acres in mineral claims, 4,500 cases, 8,630,000 acres in energy minerals; and 200 cases, 3,000, acres in common variety minerals) and meet the minerals portion of the NEMIA multiple-use planning irequirements. The commit tee-recommended increase would be divided as follows: $1,074,000 in mineral claims, $1,550,000 in energy mmnerals, and $383,000 in common varieties.





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Forest Insect and Disease Management
The committee certainly agrees with the statement in the Forest Service Explanatory Notes on the fiscal year 1979 budget proposal that "damage to the forest resources continues to be on'the 'increase, particularly damage by bark beetles and defoliators." The damage to a significant nation l resource robs the country of critically needed emplo ment opportunities and the Federal and State treasury of timber receipts. In recent years, individual Committee members have voiced concern to the Forest Service about the modest level of expenditures for bark beetles and defoliator suppression. However, the $18,633,000 in the President's fiscal year 1979 proposal does not reflect an adequate response to the concern expressed. This request, $6,656,000 less than the fiscal year 1978 appropriation level, drops this item from 87 percent of APA goals in fiscal year 1978 to 62 percent in fiscal year 1979. The amount proposed in the President's budget would continue the focus on data collection and pilot projects rather than on a full-scale suppression effort. The committee recommends an increase of $10,058,000 which would meet 90.7 percent of fiscal year 1979 RPA projected expenditures.
Construction and Land Acquisition
There exists a large accumulation, estimated to be well over $200 million, of recreation construction and reconstruction needs on the national forests. While it will take several years to reduce such a backlog, the committee feels that the Forest Service could effectively use an additional $23 million in fiscal year 1979 for construction of the most critically needed new recreation facilities ($12 million) and for provision of deferred maintenance to, and rehabilitation of, worn out or dilapidated existing facilities to halt the continued deterioration of recreation facilities which have not already been closed as a result of budget constraints ($11 million). Projects would include:
(1) Replacement of facilities that are worn out and uneconomical to operate;
(2) Upgrading of recreation facilities, particularly water and
sanitation systems, to meet recently established standards;
(3) Completion of facilities at reservoir projeCts, e.g. roads,
parking, and picnic facilities which are already in place; and
(4) Provision of recreation facilities at reservoirs constructed by
public bodies for recreation and other purposes.
The committee believes this budget addition should be particularly welcome because of the prospects for employment it affords.
This large increase is made necessary by the sizeable reduction below the already inadequate fiscal. year 1978 appropriation level made by the fiscal year 1979 request. Of the $21,767,000 reduction in the entire Construction and Land Acquisition appropriation (from $41,093,000 in fiscal year 1978 to $19,545,000 in fiscal year 1979), $7,386,000 is in the virtually halved recreation construction subcategory (from $15,208,000 in fiscal year 1978 to $7,822,000 in fiscal year 1979). The percent of RPA goal for the whole category drops from 77 percent to 22 percent, but in the subcategory it declines from 69 percent to 19 percent. The committee's recommended increase would permit the recreation construction category to reach 75 percent of the RPA fiscal year 1979 projected exp e nditures.









U.S. FOREST SERVICE

Amount Ceilings
(thousands) (FTP)

Forest Land Management:
Sales preparation- 10,000 450
Reforestation and stand improvement ------------------------------------------ 48,888 573
Recreation use -------------------------------------------------------------- 17,370 266
Wildlife and fish habitat 15,161 284
Rangeland management ------------------------------------------------------ 13,618 292
Soil and water management -------------------------------------------------- 14,171 269
Minerals area management --------------------------------------------------- 3,007 67
Forest insect and disease 10,058 136
Construction and land acquisition ------------------------------------------------- 23,000 220
Total, Forest 155,273 2, 557










D. OTHER
1. NATIONAL SCIENCE FOUNDATIOT-POLAR PROGRAMS
Polar Programs
The U.S. Antarctic research program subactivity supports a multidisciplinary -research program on the Antarctic continent and- in the adjacent oceans. The research is focused to increase scientific knowledge through environmental and resource related programs. The research is conducted at four antarctic stations, from remote temporary field sites, and aboard two research ships. Remote sensing techniques, using satellites, aircraft, rockets, balloons, and unmanned stations, are utilized in the conduct of the research. Cooperative research programs with scientists of other nations are commonplace.
The operations support program subactivity provides for the direct support of science activities and the maintenance of an effective U.S. presence in Antarctica.
The National Science Foundation is designated as the single source of funding and management for the U.S. Antarctic program. The Department of Defense and the Department of Transportation provide operational support on a cost reimbursable basis. The Foundation also contracts for support services when it is cost effective.
The committee agrees with the proposed budget authority for the National Science Foundation for both the Antarctic research program and those functions of their general research which relate to Arctic programs. The committee wishes to emphasize that over 80 percent of the Antarctic research program are funds to reimburse the Navy for logistical support. These costs are fixed, leaving only $6,542,000 for research out of the budget request of $50,700,000. The committee believes that no reduction could be made in this account without seriously jeopardizing this entire program. The committee notes that a small increase in the logistics function would allow the U.S. Navy to operate two additional aircraft which are available.
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III. LEGISLATIVE ACTION ITEMS
The -following discussion reviews those measures within the jurisdiction of the Senate Committee on Energy and Natural Resources which are expected to be enacted during the second session of the 96th Congress and would have major significance for the fiscal year 1979 budget.
The committee also will be considering a number of measures which have less significant budgetary impacts. While these measures are not likely to be of consequence to the Budget Committee, their exclusion from this report does not imply any attitude that funding would be postponed beyond fiscal year 1978 for successful measures. The budget resolution, in addition to the measures shown, should anticipate minor new legislative initiatives, which cannot now be anticipated, in the functional areas of natural resources, parks and recreation, territorial affairs, and energy.
A. ENERGY
There are numerous legislative initiatives before the 95th Congress, either as part of the Department of Energy fiscal year 1979 authorization bill or as separate legislation. Some of these may have potentiallv significant fiscal year 1979 budgetary impact, while others would have their primary impact in later years. A detailed discussion of bills which are expected to be enacted during this session and which would have fiscal year 1979 budgetary implications for the Energy function follows:

NATIONAL ENERGY PLAN LEGISLATION PENDING IN CONFERENCE
The National Energy Plan proposed by the President on April 20, 1977 was represented I egisl a 1[lively i in the Senate by', five bills, all of which passed during the first session of the 95th Co'ngress. These bills are now pending in conference in various stages of development. However, the fiscal vear 1979 budgetary implications of the bills which are under the jurisdiction of the Committee on Energy and National Resources can be estimated with accuracy at this time, since the authorization levels specified in these bills have been agreed to by the conferees. Accordingly, the budget ceiling estimates recommended bv the Committee in this report have been adjusted to take these authorizations into account.
Energy Conservation
The energy conservation bill (H.R. 5037) provides the largest fiscal year 1979 budget impact of the bills under the committee's jurisdiction. This legislation authorizes energy conservation grant, procurement and regulatory programs totaling $955 million in authorizations which could apply in fiscal year 1979. In addition programs are authorized for the purchase by the Government National Mortgage
(73)






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Association (Ginny-Mae) of $5 billion in energy conservation loans and $100 million in federally subsidized loans for solar energy equipment.
Included in the grant programs are $200 million for weatherization of dwellings occupied by low-income persons, $300 million for improvin the thermal efficiency of public schools and hospitals, $100 million to State governments and $40 million to local governments and public care institutions for technical assistance and energy audits. Federal expenditures of $50 million to implement a 10-year energy conservation program for Federal buildings, $100 million for the demonstration of solar heating and cooling in Federal buildings and $98 million for purchase of photovoltaic devices are also authorized in H.R. 5037, although it is contemplated that the authorizations for the last two programs will be spread over three fiscal years. Public &tiiity Rate Reform
The public utility rate reform bill (ll.R. 4018) also has significant budgetary impact for fiscal year 1979. Grants and technical assistance relating to rate reform total $61 million. Also authorized are loan programs for feasibility studies ($10 million) and actual construction ($100 million) of low-head hydroelectric projects in existing dams. Coal Conversion
The coal conversion bill (H.R. 5146) would require certain new electric powerplants and major fuel-burning installations and certain existing installations to utilize alternative fuels to natural gas or petroleum. An authorization of $15.7 million is provided for this program in fiscal year 1979. Loan guarantees for existing electric powerplants to acquire necessary air pollution control equipment to use coal are authorized for fiscal year 1979 in the aggregate amount of $400 million. In addition, several special studies are authorized: a one-year Presidential National Coal Policy Study ($18 million);- a two-year Presidential study of coal industry performance and competition study ($18 million); a Federal-State task force on Federal initiatives on impact assistance; a two-year study of the compliance problems experienced by small electric utility systems ($500,000); and an EPA study of the emissions from new and existing electric powerplants and major fuel-burning installations which are required to use coal or other fuel by this Act ($2,000,000). The Secretary also is directed to conduct an evaluation of potential losses of employment which may result from the application of this Act. Natural Ga"
The remaining bill under the Committee's jurisdiction, H. R. 5289, relating to natural gas pricing, contain no provision with significant new fiscal year 1979 authorizations.
S. 2692, DEPARTMENT OF ENERGY CIVILIAN PROGRAM AUTHORIZATION ACT FOR FISCAL YEAR 1979
A bill (by request) to authorize the civilian programs of the Department of Energy for fiscal year 1979 and for oter purposes. The budgetary impact of this measure is indicated in the discussion of the President's budget.






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S. 2693 (TITLE II) DEPARTMENT OF ENERGY 'NATIONAL SECURITY AND
MILITARY APPLICATIONS OF NUCLEAR ENERGY AUTHORIZATION ACT OF
1979
A bill (by request) to authorize appropriations for the Department of Energy for national security programs for fiscal year 1979, and for other purposes. The budgetary impact of this measure is indicated in the discussion of the President's budget.

S. 419, FEDERAL OIL SHALE CO-MMERCIALIZATION TEST ACT
A bill to encourage the commercial demonstration of above ground and in-situ oil shale technologies and test their commercial, environmental, and social viability. The potential budgetary impact in fiscal year 1979 is $142 million.

S. 743, THE PETROLEUM 'MARKETING PRACTICES ACT
The Petroleum -Marketing Practices Act is presently pending in markup and will in all likelihood be reported by the Committee early in the second session of the 95th Congress. A companion House bill, H. R. 1.30, has also been referred to the committee.
Title I of S. 743 establishes minimum procedures designed to protect independent dealers who market gasoline and dliesel fuel from arbitrary~ termination of lease arrangements with refiners or (listributors who supply them with petroleum products. Title II establishes octane labeling requirements for establishments engaged in the sale of motor gasoline to permit consumers to better choose the level of fuel performance required by their automobile.
Title III of S. 743 contains provisions prohibiting discriminatory pricing of motor fuel supplied to independent dealers by sup pliers who also operate their own direct mar-ketingr outlets.
Titles I and III of this legislation are largely self-enforcing and therefore -would not require significant budg~etaryv commitment in fiscal year 1979 or in subsequent years. Title 11 directs the Federal Trade Commission and the Environmental Protection Agency to perform certain tasks relating to the testing and disclosure of gasoline octane. It is likely that these tasks -will necessit ate modest expenditures by these agencies in fiscal year 1979 and subsequent fiscal years.

S. -, REFINERY CONSTRUCTIO-N ANXD CO-NVERSION ACT
Under the authority and direction of the Emergency Petroleum Allocation Act of 1973, as amended, the Federal Energy Administiration (FEA) maintained a system of price and allocation controls on sales of crude oil and certain refined petroleum products. This a uthority is now exercised by the Economic Regulatory Administration of the Department of Energy.
As part of the program, a complex system of crude oil entitlements is used to approximately equalize refiner feedstock costs. These regulations, and the additional uses to which the FEA and the Department have put the benefits under the entitlements program, have operated to discourage the construction of new domestic refinery capacity. The enactment of the crude oil equalization tax proposed by the adminis-





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traction and currently pending in House-Senate conference would further lessen the economic attractiveness of domestic refiners. These programs and trends in Federal policy have contributed to the f allure of domestic refining capacity to meet rising demand, and refined products imports have risen.
, In addition, the economics of investments in existing refineries to upgrade the capability of this capacity to refine heavier, high-sulphur oil have been quite unfavorable under Federal controls. However, it is precisely this type of oil which is increasingly available at discounted prices on the world market, from the substantial U.S. discovery in Alaska and from the preponderance of remaining domestic reserves.
Legislation to encourage both the construction of new refinery capacity and the renovation of existing capacity to handle lower quality crude oils was postponed during 1977 in order to deal with the President's energy proposals. It is anticipated that such legislation may be considered by the committee during, 1978. The budget implications of such a program could include up to $250 million *in new budget authority and authority to guarantee up to $500 million in loans.
S. 20802 FEDERAL COLUMBIA RIVER POWER SYSTEM
A bill to make certain revenues of the Federal Columbia River Power System available for maximum electric efficiency for future essential power supply, to promote conservation, and for other purRoses. The budgetary impacts of this measure would primarily consist of its long-term impacts upon revenues to the treasury from the sale of electric energy from the Federal Columbia River Power System. No direct fiscal year 1979 impact is probable.
S. 2249, SOUTHWESTERN POWER ADMINISTRATION
A bill to clarify and reaffirm the intent of Congress with respect to the transmission and sale of electric power and energy generated or purchased in the southwestern power area. The bill would require that p9wer marketed by the Southwestern Power Administration be sold without discrimination between customers.
If enacted the bill would require the Southwestern Power System to incorporate this change into its rate structure by raising rates to all customers to make up for the loss in revenue from one customer. Because such a proposed rate increase would take approximately 18 months before approval, there would be a budget impact in 1978 of $1.3 million and in 1979 of $2.6 million which represents the dr in payments to the Treasury on its debts by Southwestern Power. 17wever, there would be no net cost to the government since rates would be restructured to regain these amounts in later years and any keeline in the amount repaid in 1978 and 1979 would be recovered eventually.
S. -1 FEDERAL POWER MARKETING REVOLVING FUND ACT
bill to provide for a, revolving fund for Western Area Power Administration, Southwestern Power Administration, Southeastern Power Administration, and Alaska Power Administration (to be pro.-








posed by the Administration). The bill would have no fiscal year 1979 budget impact, but would have long-term impacts upon appropriations for and revenues from the operations of these Federal electric power systems.

S. 2533, THE GASOHOL MOTOR FUEL ACT OF 1978
Gasohol as a substitute for imported petroleum supplies is widely supported in both Houses of the Congress. Legislation pertaining to the use of alcohols from coal and renewable resources as a gasoline additive is almost certain to pass in the 2d session of the 95th Congress. More than twenty Senators have either introduced legislation or contemplate legislative proposal. The specific details of the program that will be finally enacted are difficult to lpredlict. However, the Gasohol Motor Fuel Act of 1978 (S. 2533) is representative.
The bill would establish a national requirement that gasoline sold for use in motor vehicles must contain on the average a, specified percentage of alcohol made from renewable resources. T he Secretary of DOE would be required to conduct a 6-month stud 'y on the development of an alcohol motor fuel industry, to set national production goals for the production of alcohol for blending in motor fuel, and to prescribe requirements regarding the minimum percentage of alcohol that must be contained on the average in motor fuel.
An authorization of $1 million for fiscal year 1979 is provided.
The Budget Committee should anticipate budgetary impacts beyond the amounts requested in the fiscal year 1979 DOE authorization as part of the biomass program. The budget resolution should provide for this eventuality in the Energy function.

S. 2962 (TITLE VI) BASIS FOR GOVER-NM-EN.\T CHARGE FOR URA-NIUM-\ ENRICHMAENT SERVICES
S. 2692, Department of Energy Civilian Program Authorization Act for fiscal year 1979 in Title V1 seeks to amend the Atomic Energy Act of 1954, as amended, to permit a commercial pricing of uranium enrichment services. The President's requested budget contemplates revenues of $163 million from enactment of this legislative proposal. However, a similar proposal submitted by the Administration in its fiscal year 1978 authorization request was not enacted by the Congress, therefore it is unclear whether this resubmitted proposal will be approved during the 2(1 session of the 95-th Congress. The Budget Committee should take cognizance of the possibility of a short fall in revenues of $163 million which would result if the authority is not grantedl. This would necessitate a correspondin g increase in the Department of Energy appropriations for fiscal year 1979.

S. -, URANIUM ENRICHMENT FUND
The committee understands that in the near future the Administration -will recommend establishment of a re-volvinop fund regrding uranium enrichment services and revenue,-. The proposal would parallel a government corporation type of operation. Tihe prospect of Congrressional action on such a proposal is unclear. The budgyetary

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impact is even less clear because no specific details with regard to the proposal were available when this report was prepared. However, an initial fiscal year 1979 appropriation may be required to establish the revolving fund, depending upon the specific details of the proposal.
NUCLEAR WASTE MANAGEMENT
There is a high degree of interest on the part of the Members in both the Senate andAhe House of Representatives in establishing an aggressive program to solve the nuclear waste problems associated with both military and civilian nuclear power programs. A number of legislative proposals have been introduced, including S. 63 and S. 2189. A comprehensive review of the nuclear waste problem will be completed by the DOE within the next few weeks. The prospect for early Congressional attention to resolution of the spent fuel problem for domestic nuclear -power plants seems likely. Such legislation could require the lease or purchase of new or existing facilities for storage of spent fuel. While the specific budgetary impact of such legislation for the DOE waste management activities is unclear it may require an additional $30 to $50 million in fiscal year 1979.
S. -1 NUCLEAR SITING AND LICENSING ACT
The Administration will shortly submit to the Congress a Nuclear Siting and Licensing Act which may include provisions establishing cost-sharig programs with states or regional organizations to estal;-, lish site planning activities for energy facilities. The anticipated specific fiscal year 1979 budget authority to initiate this program is not available to this committee at this time. However, such legislation would receive high priority consideration. Congressional approval of such cost-sharing programs by the Department of Energy with the States could require adjustments in the Energy function ceiling to embrace the required funding.
URANIUM MILL TAILINGS
The historic activities in uranium mining and milling in the West have resulted in uranium mill tailings which are of concern to Members from the repository states. Legislative initiatives to deal with these disposal sites in an environmentally sound manner may be approved during this session of Congress. Preliminary information indicates that a 5-year $80 million program would be required if the approtate legislative authorization were enacted for the DOE to inil econtamination activities.
S. -, WIND ENERGY DEMONSTRATION AND COMMERCIALIZATION ACT OF 1978
A bill to authorize $2.5 billion in new authorizations for the Department of Energy to support a 10-year wind demonstration and commercialization program. Of this $70 million would be required for activities in fiscal year 1979.
S. -, FEDERAL COAL LEASING AMENDMENTS
A bill to amend the coal leasing T,rovisions of the Mineral Lands Leasing Act. Not yet introduced. he bill would -have little or no budget impact in fiscal year 1979.






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H.R. 10601, SOLAR POWER SATELLITE RESEARCH, DEVELOPMENT,
AND DE-MONSTRATION ACT OF 1978
Solar power satellite systems are receiving substantial congressional review. In the House of Representatives, H. R. 10601 the Solar Power Satellite Research, Development, and Demonstration Program Act of 1978 authorizes a total of $25 million in fiscal year 1979 to begin a program leading to eventual insertion into earth orbit of a small satellite to test the technical feasibility of beaming electrical energy back to the earth from a satellite. This proposal enjoys bipartisan support in the House of Representatives and has attracted attention in the Senate as well. Because such legislation may be enacted by the Congress in this session, it should b.- considered in establishing Energy Function budgetary ceilings. t n
H.R. 10830, SOLAR PHOTOVOLTAIC ENERGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION ACT
In the House of Representatives, The Solar Photovoltaic Energy Research, Development and Demonstration Act (H.R. 10830) has been introduced and adopted as a separate title to the Department of Energy authorization bill for fiscal year 1979 (H.R. 10969). This action was taken by the Subcommittee on Advanced Energy Technologies and Energy Conservation Research, Development and Demonstration of the House Science and TecirnologyT Committee. This bill contemplates a 10-year program leading to a large reduction in the cost of photovoltaic solar cells at the conclusion of the decade. An authorization of $1.5 billion is provided for the entire program, with $125 million authorized in fiscal year 1979 (Which is to include any fiscal year 1979 funding for a similar program contained in the National Energy Act. Whether the Senate approves a similar bill or not the Budg et Committee should take cogrnizance of this major initiative which may be accepted in Conference as part of the fiscal year 1979 DOE authorization bill, and would need to be reflected in Energy Function budgetary ceilings.
S. -, COMPREHENSIVE STATE ENERGY PROGRAM
The committee understands that the administration intends to propose legislation which would consolidate existing State grant programs which support energy conservation efforts by State government. The programs affected are presently authorized b y the Energy Policy and Conservation Act, the Energy Conservation and Production Act and the National Energy Extension Service Act. The recoinmended fiscal year 1979 authorization levels for these programs are discussed elsewhere in this report. The committee anticipates no additional fiscal year 1979 budg-etary impact. above these levels as a result of enactment of this legislation. However, since the administration 's actual legislative proposal has not been made available to the committee this estimate must necessarily be tentative at this time.
B. NATURAL RESOL-RCES A-ND ENVIRONMENT
WILDERNESS, WILD AND SCENIC RIVERS, AND TRAILS
In May of 1977, President Carter transmitted his environmental message to the Congress. Included in that proposal are a number of measures to designate lands for inclusion in the national wilderness,





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wild -and scenic rivers or. trails system, or to study lands for possible inclusion in one of' those systems. The committee will consider several components of this'packagre (luring the next year. Costs associated with such proposals are relatively insignificant and are included within various broader budget categories for the particular agency (i.e., Forest Service, Bureau of Land Management, Heritage Conservation andl Recreation Service, etc.) -or the Land and Water Conservation Fund.
H.R. 3813,* REDWOOD NATIONAL PARK EXTENSION
Legislation to expand Redwood National Park by some .48,000 acres has passed both Houses of Congress and awaits Presidential, approval. Should this legislation be enacted into law, it is estimated that the acquisition cost for these lands will be approximately $350 million. While it is not clear at this time whether the legislation will be funded through the Land and Water Conservation Fund or general revenues, a fiscal year 1979 budget impact of at least $150 million may be anticipated if this legislation, as seems probable, is appro ved.
HOUSE OMNIBUS PARK LEGISLATION
The House Interior and Insular Affairs Committee is currently considering an omnibus park proposal designed primarily to take care of a number of National Park Service "housekeepig" matters such as ceiling increases for land acquisition and development in existing units of the national park system, as well as some minor boundary modifications for existing units. The committee notes that the National Park Service has included funds for these ceiling increases and boundary modifications in their fiscal year 1979 budget. It is likely that the Energy and Natural Resources Committee will act on this proposal this year as passage of these measures is often critical to the protection and enhancement of existing units of the national park system.
CREATION OF PARKS AND RECREATION AREAS
The committee wishes to note that inasmuch as land acquisition costs for units of the park system and other Federal recreation land acquisitions are funded from the Land and Water Conservation Fund, enactment of legislation creating new park units will not affect budget levels. In this regard, the committee expects to consider a number of such measures during this year, including proposals to establish the Jean Lafitte and San Antonio Missions National Historical Parks, the Chattahoochee River National Recreation Area, the Lowell National Cultural Park, the Jackson Hole Scenic Area and the Long Island Sound Trust proposal.
S. 975, PARK TRANSPORTATION ACT
This measure would provide the Secretary of the Interior with the auithority to plan, develop, and, in limited instances, provide for alternatives to the automobile for access to units of the national
park system. In developing alternative transportation projects, the Secretary would have to consider their environmental energy, recreational, and social impacts. He would be required to consult with public and private transportation authorities and. carriers,








other Federal agencies, and local citizens groups. Public meetings would be held near the affected park prior to the implementation of any transportation project.
As introduced, the legislation authorizes $6 million over a threeyear period to carry out the purpose of the Act. The authorization level for fiscal year 1979 would be $1 million.
S. 2566, PENNSYLVANIA AVENUE DEVELOPMENT CORPORATION
The Pennsvlvania Avenue Development Corporation was established by Congress to develop and implement a plan for the rehabilitation of Pennsylvania Avenue. The plan went into effect following Congressional review in Ma, 1975. The Corporation will need an increase in its borrowing authority from the present $50 million to $200 million and in appropriations from the present authorized level of $38 million to $130 million to achieve the plan. While outlays will be spread over a period of time (until 1990), the budget authority will enable the Corporation to attract the private investment necessary to accomplish the objectives of the Act.

S. 2699, ARCHEOLOGICAL INVESTIGATIONS AND SALVAGE PROGRAM
The Archeological Investigations and Salvage Program expires at the end of fiscal year 1978. The committee expects to act on S. 2699 this session. The measure would provide a 5-year authorization for the program, with a $5.3 million authorization for fiscal year 1979.

S. 88, MINERAL KING
Legislation to add the Mineral King Valley to Sequoia National Park has been pending before Congress for several years. A i\Iineral King proposal has been reported favorably from the House Parks and Recreation Subcommittee and may be included in the House omnibus bill. S. 88, the bill currently pending before the committee, would authorize $5.5 million for land acquisition. These funds would be made available from the Land and Water Conservation Fund. Depending on House action, this measure may well be enacted during the next year.
S. -) NATIONAL HERITAGE
As discussed under the purpose of the Heritage Conservation and Recreation Service, legislation is needed to carry out many of the activities envisioned in the National Heritage proposal. To date, this proposal has not been transmitted to the Congress and potential budget impact for fiscal year 1979 is unclear.
OFFICE OF SURFACE .MINING RECLAMATION AND ENFORCEMENT AUTHORIZATION
The Department of the Interior has proposed legislation providing an authorization of $19,068,000 to the Office of Surface Mining Reclamation and Enforcement covering State and Federal enforcement of the interim regulations published in December 1977. It is necessary





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to raise the authorization level provided in the Surface Mining Control and Reclamation Act ($10,000,000) because of an increase in estimated costs and personnel needed to provide State regulatory program grants for interim enforcement by the States during the period prior to approval of the State permanent regulatory programs, and an increase in estimated costs and personnel required for Federal inspection during the same period.
The OSMRE budget request is predicated upon the assumption that legislation authorizing the additional $9,068,000 needed for the State grants and Federal regulation will be approved. The committee expects to consider this legislation, which has been referred to it and to act favorably at the appropriate time.
S. 2463, AUTHORIZATION FOR SURFACE MINING CONTROL AND RECLA.MATION ACT, SECTION 507(e)
A bill to increase the authorization for the small operator assistance program of the Office of Surface Mining Reclamation and Enforcement for fiscal year 1979 from $10 million authorized in section 712(b) of the Act to $25 million. Authorization for fiscal year 1980 would also be $25 million and for each fiscal year for each of the thirteen years remaining in the abandoned Mine Reclamation Fund collection period the authorization would amount to $15 million.
S. 2672, SMALL OPERATOR ASSISTANCE
S. 2672 would increase the authorization of funds for small operator assistance under the abandoned Mine Reclamation Fund from $10 fflion to $25 million in each of fiscal years 1979 and 1980 and $15 million in the remaining years of the fund collection period.
S. 2672, AUTHORIZATION FOR SURFACE MINING CONTROL AND RECL,4sN1ATION ACT, SECTION 712(a)
Section 712(b) authorizes $10 million for fiscal year 1978 and $10 million for each of the succeeding fiscal.yeaxs to cover costs of State and Federal enforcement of the interim environmental protection performance standards of the Act.
Because of an increase in estimated costs and personnel needed to provide State regulatory program grants for interim enforcement by the States during the period prior to approval of the State permanent regulatory programs, and because of an increase in estimated costs and personnel required for Federal inspection during the same period, additional authorization legislation has been proposed by the Department for $19,068,000, up from $10,000,000.
Information, received by the Office from the States indicates t1lat approximate])- 300 man years of additional capability will be needed to enforce Federal environmental protection performance standards. This equates to grant requirements of $7,500,000 as shown M the budget re( tiest, for fiscal year 1979. Also, because the Act requires seni-anniZ Federal inspection, plus inspections responding to citizen complaints or successive violations that show lip in State inspection reports, the total Federal workload has now been estimated to be 20,000 Federal inspectiODS in fiscal year 1979 at a cost of $11,568,000. Taken together, these total $19,068,000.





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The two additional amounts have been incorporated into the fiscal year 1979 estimate line items for State regulatory program grants and for Federal regulatory programs respectively.
The OSMRE budget request is predicated upon the assumption that legislation authorizing the additional $19,068,000 needed for the State grants and Federal regulation will be approved.

S. 9, OUTER CONTINENTAL SHELF LANDS ACT AMENDMENTS
A bill to establish a policy for the management of oil and natural gas in the Outer Continental Shelf; to protect the marine and coastal environment; to amend the Outer Continental Shelf Lands Act; and for other purposes.

S. 2234, QUADRENNIAL BUREAU OF LAND MA-NAGEMENT AUTHORIZATION
Section 318 of the Federal Land Policy and Management Act of 1976 provides that no future appropriations are to occur unless % the sums are expressly authorized by the Congress on a four year cycle. The first quadrennial authorization is required for the fiscal year 1979-1982 period. The Secretary of the Interior was directed to forward by May 15, 1977, his estimates of the funding the Bureau could efficiently and effectively use. These estimates were to be, made without regard to budgetary guidelines or limitations. The Seen-ctai-y's proposal, 5. 2234, was transmitted on September 26, 1977.
Hearings have been completely on S. 2234 and the Comimittee expects to report it in April. The House Indian Aff airs andI Public Lands Subcommittee has reported the counterpart measure Hi.R. 10787 to the full Interior Committee.
Most of this committee's recommendations for the fiscal vi:r1979 budget request for the BIAI correspond to the Secret ar ',s ireommendations. Set forth below are the additions to the Pre, Ident's proposed 1979 budget by appropriation which S. 2234 would require in fiscal years 1979 to 1982.
BUREAU OF LAND MANAGEMENT-QUADRENNIAL AUTHORIZATION [Budget authority in millions of dollars]
President's Increases above President's 1979 budget level budget,
Appropriation 1979 1979 1980 1981 1982
Management of lands and resources I-------------------- 275 45 75 165 135
Acquisition, construction, and maintenance -----8 2 4 7 9
Payment in lieu of taxes------------------------- 105 ------ 3 6 9
Mineral impact loan assistance-------------------- (2) 45 50 57 65
Total --------------------------------- 398 92 132 175 218
1 Includes increases of $30,000,000 per year to cover change in financing of emergency firefighting.
2 $40,000,000 to be requested following legislative change in interest rate.

H.R. 9757, GRAZING FEE MORATORIUM ACT OF 1978
This measure would impose a moratorium on any increases in fees for grazing livestock on BLM or Forest Service lands during the 1978 grazing season. On October 21, 1977, pursuant to section 401 (a.)





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of the Federal Land Policy and Management Act of 1976, the Secretaries of the Interior and Agriculture submitted to the Congress their report, entitled "Study of Fees for Grazing Livestock on Federal Lands," which proposes a raise in grazing fees based on a formula somewhat different than the Udall formula used prior to 1977. The purpose of H.R. 9757 is to provide the Congress additional time to analyze the Secretaries' proposal.
H.R. 9757 has passed the House of Representatives and is on this committee's markup calendar. Its enactment this month or next is highly likely.
As noted elsewhere, the moratorium would reduce the funds available to the BLM Range Improvement Fund in fiscal year 1979 budget category by $1,728,000 and the fiscal year 1979 Range Improvement account of the Forest Service by $1,174,000. To restore this likely reduction, the Committee recommends adding those figures to the range management budget item of the fiscal year 1979 BLM Management of Lands and Resources appropriation and the rangeland management budget item of the fiscal year 1979 Forest Protection and Utilization appropriation of the Forest Service.

H.R. 1074, NATIONAL RANGELANDS REHABILITATION AND MAINTENANCE
ACT, AND S. 2475, PUBLIC GRAZING LANDS IMPROVEMENT ACT
Last Congress, the committee favorably reported by unanimous voice vote and the Senate passed by voice vote S. 2555, the National Rangelands Policy Act of 1975. No action was taken in the House. This legislation would have required the Secretary of the Interior to develop a specific plan within five years that would bring the nation's public range lands to full productivity in 30 years. The legislation authorized $895.5 million over the 30 year period to develop the comprehensive plan and effect the necessary range improvements.
This legislation was introduced in response to the previouslymientione(l 1975 "Range Condition Report" submitted to the Senate Appropriations Committee. The report concluded that much of the 160 million acres of rangeland owned by the Federal government is in poor and steadily declining condition, The Bureau of Land Managemient estimates that the productive capability of these lands will be reduced by one-fourth within 25 years unless some positive action is taken. A recent GAO study, dated July 5, 1977, and titled "Public Rangelands (Continue to Deteriorate", concurs in and reemphasizes the message of the BLM report.
While provisions in the Federal Land Policy and Management Act raised from 25 to 50 percent the portion of all moneys received by the U.S. as fees for grazing domestic livestock on public lands which must be I~lale available for on-the-ground range ilprovemIent's, that Act and the modest increases in renewable resources proposed in the Quadrennial BL M Authorization bill (8. 2234) will provide only a small l)ortion of the funding necessary to meet the goal of rehabilitation of the range within .0 years (cost $895.5 million). Furthermore, the Act does not set forth any such goal and does not speak to the question of rehabilitation.
A (miI) prehensive range bill (S. 2475; H.R. 10587) has been intro(huced in both the louse and the Senate and the Ihouse Indian Affairs





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and Public Lan(ds Subconlnittee has scheduled hearing on its, bill. These comprehensive bills provide for a 20-year range reliahilitut ion program totalling $350,000,000, $15,000,000 add(litional in each of the first four fiscal years 1979-82. Given this high level of leis-lat iVe activity, passage of a bill containing a range rehabilitation proran is likely.
The program's likely budgetary effects woull(d be to raise the range management budget item (Managenent of Lands am Re source
appropriation) of the BLM by the following amounts:
Fiscal year 1979, +$10,000,000; fiscal year 1980, +$14,500,000; fiscal year 1981, +$19,000,000; fiscal year 1982, +$2,,500,000, and fiscal year 1983, +$24,000,000.

MINERAL IMPACT LOAN LEGISLATION
Section 317(c) of the Federal Land Policy and Managemneint Act establishes a program to provide loans to State and(l local governments which will be required to increase their expenditures to mitigate adverse, social, economy, and environmental imn)acts from mineral leasing on public lands. The purpose of the provision is to ensure that these governments will have capability to plan and nact ahead of these impacts and will not be faced with the necessity of waiting for their share of Federal leasing monies to simply react to those impacts.
President Carter proposed a $40 million addition to President Ford('s fiscal year 1978 budget request in order to fund this program. lie conditioned it, however, on the enactment of legislation to raise the loan interest rate above the 3 percent provided in FLPMIA. On January 31, 1977, Senators Metcalf and Haskell, (C'hairmen of the relevant subcommittees, and Senator Hansen, ranking minority member of the committee, wrote Interior Secretary Andrus pledging their support for the enactment of such an amendment to FLPMIA. The Administration's proposal was submitted on August 31, 1977. Although the committee is not prepared to render its support for any specific provision of the Administration's proposal, it does expect to report legislation which will raise the interest rate.
Although the President did not insert any funds in the fiscal year 1979 budget, thus treating the impact loan program as a new legislative item, the committee does not regard it as such; the program was established by FLPMA. As the legislation will likely be passed, however, the issue will be made moot and funding will be required whether it is regarded as an old or new program. The budget effect would be to add the following in a new Bureau of Land Management budget category:
Fiscal year 1979, +$40,000,000; fiscal year 1980, +$50,000,000; fiscal year 1981, +$57,000,000; fiscal year 1982, +$65,000,000; and fiscal year 1983, +$70,000,000.
S. 1820, NATURAL DIVERSITY ACT
Both Houses have completed hearings on bills to declare, as a national goal, preservation of America's natural diversity, including individual species of plants and animals, terrestrial and aquatic community types, geological features and other important biological an






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ecological phenomena; and to assist States and Federal land management agencies to develop data mangement systems and programs to locate, classify, and maintain sufficient elements of such natural dilversity. The legislation would permit the establishment nationwide of programs which now exist, through the assistance of the Nature Conservancy, in eleven States. The budget effect would be to increase the Department of the Interior's budget as follows:
Fiscal year 1979, +$91,000,000; fiscal year 1980, $141,000,000; fiscal year 1981, +$141,000,000; fiscal year 1982, + $141,000,000; and fiscal year 1983, +$141,000,000.

ALASKA NATIONAL INTEREST LANDS LEGISLATION
The Congress will likely take action on the Alaska National Interest lands legislation this session. Pending before the committee are six bills-S. 499, S. 500, S. 1500, S. 1546, S. 1787, and S. 2465-to designate from 26 million to 116 million acres of Federal land in Alaska as components of the four conservation systems-National Park System, National Wildlife Refuge System, National Wild and Scenic River System, and National Forest System. Most of the lands to be designated are withdrawn under section 17(d) of the Alaska Native Claims Settlement Act until December 18, 1978. Both Houses are expected to complete action on the legislation before expiration of the withdIrawal. The Subcommittee on Oversight and Alaska lands has reported a bill (H.R. 39) to the full House Interior Committee, which is now in markup on the measure. This committee expects to complete hearings on the legislation in April and begin markup in May.
As the land is presently withdrawn, the designation of the lands by the legislation would not have any significant budgetary impact. The bills have no authorization.

S. 1338, FOREST SERVICE SKI PERMIT BILL
This committee has twice reported and the Senate has twice passed a bill to reform the policies and procedures followed by the Forest Service in issuing permits for concessioners to use national forest land in the conduct of their business. The bill (this Congress' version, S. 1338 was passed on July 13, 1977) is known as the "ski permit" bill because the largest concessioners which have the greatest impact on the environment and social services and to which many of the provisions of the bill are specifically addressed are ski resorts. S. 1338 would replace the 1897 and 1915 laws now employed by the agencT fore permitting purposes. It would require more careful analysis o environmental impacts, the sharing of a greater percentage of fee revenues with localities, more sophisticated agency planning, and greater participation in that planning by State an ocal governments. The costs of thie concessioner licensing program would be only marginally greatevr. However, as the bill would increase from 25 to 50 percent the share of permit fees paid to the local governments, Federal revenues would be reduced as follows:
Fiscal year 1979, -$2,000,000; fiscal year 1980, -$2,200,000; fiscal yeari 1981, -$2,400,000; fiscal year 1982, -$2,600,000, 'and fiscal yeair 1983, -$2,800,000.






87

S. 2053, DEEP SEABED MINERALS RESOURCES ACT
Enactment of a bill to promote the orderly and environmentally sound exploration for and commercial recovery of ferromanganese nodules form the deep seabed is a distinct possibility this session. Three committees of the House have reported S. 3350 and this committee has placed a comparable bill, S. 2053, on the markup calendar. Last Congress this committee reported similar legislation but no further action was taken largely because of Administration opposition based on the concern that enactment of the measure would jeopardize U.S. interests in the U.N. Law of the Sea Conference negotiations. However, the position of this Administration is favorable to passage of the legislation.
The bill would establish a Federal program to grant licenses for exploration and permits for commercial recovery to U.S. citizens. The U.S. could enter into agreements with "reciprocating states" to mutally respect each other's deep seabed mining program. The program would be interim in nature pending ratification of a Law of the Sea treaty by the United States.
The budget effect would be to add the following to the budget of either the Department of the Interior or the Department of Commerce: fiscal year 1979,-$700,000; fiscal year 1980,-$35,600,000; fiscal year 198 ,+$155,600,000; fiscal year 1982,-$37S,700,000: and fiscal year "9' T $700,700,000.
S. 74, PAYMENTS IN LIEU OF TAXES ACT AMENDMENT
The committee will consider numerous bills to amend the Pavments-In-Lieu-of Taxes Act, (Public Law 94-656) to add additional Federal lands to the lands eligible for PILT payments: semiactive or inactive army installations (S. 74), Indian trust and administrative lands (S. 1168), national wildlife refuge system lands and lands acquired for national parks or wilderness within local government bomdaries in Alaska (S. 2558). As a complicated formula is used to determine the amount of funds local governments can receive, budget estimates are not available on these bills. The possible budget effect could be to add the following to the payments-in-lieu of taxes budget category of the Bureau of Land -Management:
Fiscal year 1979,+$2,500,000; fiscal year 1980,-$2,500,000; fiscal year 1981,+$2,500,000; fiscal year 1982,+$2,500,000; and fiscal year 1983, $2,500,000.

H.R. 1609, THE COAL SLURRY PIPELINE BILL
Numerous bills relating to coal slurry pipelines have been introduced in both Houses. Two basic approaches are under consideration: In one approach the Federal government would grant the power of eminent domain to the pipelines provided they secure a certificate of public convenience and necessity subject to typical federal common carrier requirements. In the second approach, the Federal government would not grant eminent domain power but slurry lines would be designated as common carriers and conflicts over rights-of-way between slurry lines and railroads would be resolved by the Interstate Commerce Commission.








No action was taken on the bills last session in anticipation of the publication of the Office of Technology Assessment study "A Technology~ Assessment of Coal Slurry Pipelines". With publication of the draft of the study last month, legislative activity picked up, w ith two Committees in the House of Representatives holding hearings on the legislation. Following the hearings, the House Interior Committee ordered reported H.R. 1609 which adopts the first approach to permitting slurry lines. The Senate passed a somewhat similar bill (S. 3879) in 1974, but will likely await House action before initiating consideration of the legislation this session.

The budget effect of the legislation would be as follows:
Fiscal year 1979, +$1,500,000; fiscal year 1980, $1,500,000; fiscal year 1981, +$1,000,000; fiscal year 1982, +$1,000,000; and fiscal year 1983, +$110001000.
MINING LAW REFORM BILLS
Three bills to reform the Mining Law of 1872 are before the committee: S. 1284 (Senator Metcalf), S. 2133 (Administration), and S. 2210 (Senator McClure), Reform of the more than century old statutory base for the disposition of hardrock minerals on public lands was made a priority of the Carter Administration in the President's 1977 Environmental Message to the Congress. Both S. 1248 and 5. 2133 would replace entirely the 1872 Mining Law and its location-patent system with a leasing system similar to that for coal, oil and gas and other 1920 Mineral Leasing Act minerals. S. 2210 would refine the present location-patent system. Should the leasing alternative be chosen it would add the following to the Bureau of Land Management budget:
Fiscal'year 1979, $15,000,000; fiscal year 1980, +$161000,000; fiscal year 1981, +$15,000,000; fiscal year 1982, +$15,0001,000; and fiscal year 1983, +$15,000,000.

ANTICIPATED ADMINISTRATION PROPOSALS
S. -, Legislation to increase the authorized ceiling for the San Luis Unit of the Central Valley Project in California. Fiscal year 1979 budget authority: $18,800,000.
S. -, Legislation to authorize the appropriation of fundIs'to'be used for the modification of existing dams for safety purposes. Fiscal year 1979 budget authority: $3,000,000.
S. -, Legislation to increase the authorized ceiling for the Colorado River Salinity Control Program. Fiscal year 1979 budget authority: $300,000.
C. OTHER
GUAM CONSTRUCTION
The President has recommended new budget authority of $8.868 million for construction of water service facilities on Guam. The necessary authorizing le gislation has just been transmitted to the Congress. The comminittee in its comment No. 8 on the Guamn authority has indicated1 its agreement and1 support for that level of funding with the Department's estimate of pr~oper outlays of $3 million in fiscal year






89

1979. Guam has not as yet fully recovered from the damage caused by Typhoon Pamela is almost totally dependent on specific grants from the Federal Government for any large projects both basic operations and maintenance.
GUA'.Nl HOSPITAL PURCHASE
The Congress authorized $25 million in Section 205 of Public Law 95-134 to meet the health care needs of Guam. Typhoon Pamela virtually destroyed the present Government of Guam facility, the Guam Memorial Hospital. Rather than renovating the existing facility, the Government of Guam would prefer to purchase the Medical Center of the Marians, a fully equipped acute care facility which had been recently completed. Testimony before the committee indicated clearly that Guam cannot support two acute care facilities and that the purchase of the hospital was in the best interests of the people of Guam as well as in the National interest. Delays in requesting the necessary appropriations have increased the cost for the purchase of the hospital since both the Medical Center of the Marianas the Guam Memorial Hospital are unable to meet expenses so long as both are used for acute care treatment. The committee staff believes that the proper course of action is for the government of Guam to purchase the Medical Center of the Marianas and accordingly it will be nece ssary to authorize additional sums of between $5 and $10 million for that purpose. The necessary authorization has not as yet been transmitted by the Administration.
VIRGIN ISLANDS HOSPITAL CONSTRUCTION
Health studies in the Virgin Islands are virtually complete and are being reviewed by the Department and the Governor. The committee anticipates that no significant change will be made in the basic recommendations of the study and that the Department will seek funding in fiscal year 1979 to begin the construction of hospital facilities on St. Thomas and St. Croix together with a similar facility on St. Johns.
The total estimated cost for hospital construction will be approximately $52 million with outlays in fiscal year 1979 totaling approximately $15 million. No authorization has been transmitted to the Congress as yet pending a final review of the study, the Governor's recommendation, and clearance from the Office of Nianagement and Budget.
VIRGIN ISLANDS FUND
The Virgin Islands is required to maintain a balanced budget. Conflicts between the Virgin Islands and the Administration over the requirement in the Virgin Islands Revised Organic Act that tax revenue collected by the United States on goods produced in the Virgin Islands be returned to the Vircrin Islands as that provision relates to the Federal excise tax on petroleum products may result in a deficit for the Virgin Islands in fiscal year 1979 of as much as $30 million. Pending resolution of current litigation over the interpretation of that provision of the Revised Organic Act the Administration is unlikely to transmit the necessary authorization to cover the possible deficit in the Virgin Islands.





90

The committee, therefore, notes that it is possible that the Congress will have to consider legislation to authorize funds for the Virgin Islands either to cover their deficit or to reimburse them for their revenue mistakenly withheld by the United States.
REHABILITATION OF BIKINI ATOLL
A bill to authorize the Secretary of the Interior to complete the rehabilitation of Bikini Atoll.
Recent radiological studies have disclosed unacceptably high levels of radiation on several islands in the Bikini Atoll. The U.S. has committed itself to rehabilitation of Bikini atoll in order to allow the inhabitants of the atoll to return to their homeland.
The Bikinians were displaced during the late 1940's to enable the U.S. to conduct nuclear weapons tests. Estimates of additional rehabilitation costs at Bikini are approximately. $15 million with $6 million in budget authority and $3 million in outlays in fiscal year 1979.














APPENDIX
List of accounts cons ide-red by the Senate Committee on Energy and Natural Resources
Functioi Trcazsiirfl
National defense (050): account No.
Navy construction (01------------------17-1205
Atomic energy defense activities (053) ------------------------- 89-0201
General science, space, and technology (250):
NSF polar research program (251):
DOE general science and reerh------------89-0202
Energy (270):
Energy supply (271):
Petroleum reserves -------------------------------------11-5001
GS PET 4 --------------------------------------------- 14-0805
Coal research labs---------------------------------------- New
DOE energy supply------------------------------------ 89-0203
DOE advances -----------------------------------------S89-8575
DOE special foreign currency ----------------------------89-0205
DOE geteml-------------------89-0206
Power marketing administrations:
Southeast------------------------------------------ 89-0302
Southwest ----------------------------------------- 89-0303
Alaska -------------------------------------------- 89-0304
Bonnvile------------------------------89-4045
Colorado-western Arizona --------------------------89-4452

Emergency---------------------89-5069
Western power--------------------------------------- New
Energy conservation (272): DOE energy conservation------------S89-0203
Emergency energy preparedness (274) -------------------------89-0203
Energy information, policy, and regulation (26---------9-0203 Natural resources and environment (300):
Water resources and power (301):
Bureau of Reclamation:
Colorado River Basin salinity------------------------- 14-0663
Loan program -------------------------------------- 14-0667
Colorado River Basin-------------------------------- 14-4079
Upper Colorado River strg------------14-4081
Emergency fund ------------------------------------ 14-5-043
Construction and rehabilitation ----------------------- 14-5061
Operation and maintenance --------------------------14-5064
General administrative------------------------------- 14-5065
General investigations-------------------------------- 14-5660
Conservation and management (302):
Forest Service:
Forest protection and utlzto-----------12-1100
Rangeland improvement fund ------------------------12-5207
Youth Conservation Corps --------------------------- 12-1125
Rights of way -------------------------------------- 12-5019
Bureau of Land Management:
Mana gement of lands and rsucs---------14-1109 Acquisiion construction, and maintenance ------------- 14-1110
Working capital fund -------------------------------14-4525
Recreation development and operation ----------------- 14-5011
Service charges ------------------------------------- 14-5017
Range improvements fund---------------------------- 14-5132
Oregon and California grant lands --------------------- 14-5136
(91)




UNIVERSITY OF FLORIDA

92 1111111111Ut111111111111111 111111111111111111ll1U11E1111I
3 1262 09118 7475I

-Nat uril1 resources and environment (300) --Continued Treasur~y
Office of Surface Mine Reclamation and Enforcement: account No.
Regulation and technology ------------------------------14-0116
Abandoned mine rcaain--------------14-1111
Abandoned mine relmto--------------14-8071
Recreational resources (303):
Forest Service-construction-----------------------_--- 12-5009
Bureau of Rcaain----------------14-0682I
Bureau of Outdoor Rerain-------------14-0682
Preservation of historic poet-----------14-1040
Consolidated working fud-------------14-3910
Planning development and operations ------------------ 14-5006
Land and water conservation fund --------------------14-50005
Historic preservation fud-------------14-5140
National Park Service:
Opertios------------------------------14-1036
Consrucion----------------------------14-1039
Advisory Council on Historic Property--------------------- 95-2300
Corps of Engineers-use fes--------------96-5007
Other natural resources (306):
Bureau of Mines:
Mines and minerals --------------------------------- 14-0959
Consolidated working fund --------------------------- 14-3909
Office of the Secretary:
Salaries and exess-----------------14-0102
Special foreign currency ---------------------------------14-0105
Office of the Slctr-----------------14-0107
Department oeain-----------------14-0108
Geological Sre---------------------14-0804
Transportation (400):
Rail Transportation (401): Railroads rehabilitation----------------New
Water transportaion (403): State boating safety assistance -------- 69-0246 Community and regional development (450):
Community development (451):
Pennsylvania Avenue Development Corporation:
Salaries and exess---------------42-0100
Planning and dvlpet-------------42-0102
Land aqiiin-----------------42-4084
Area and regional development (452): Alaska Planning Commission 48-0058 / 48-8061
General government (800):
General activities (804): GSA disposal of surplus real property--.-- 47-5253
Other general government (806):
Administration of territories -----------------------------14-0412
Trust Territory of th e Pacific Islands------------14-0414
Revenue and general purpose fiscal assistance (850):
Fiscal as sistance, (852):
BLMI payments in lieu of txs-------------14-1114
BLM mineral impact loan assistance ----------------------14-1140

0